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Consumer prices in Houston are rising in synch with national rates, indicating that national inflation rates are similar to those in Houston, according to data provided by the Greater Houston Partnership.
Between August 2020 and August 2021, both the United States and Houston had a 5.3% increase in the cost of consumer goods and services; nationwide, this represented a 0.1 % drop from the 5.4% inflation rate in June and July.
This small decline appears to indicate that inflation has slowed, ending an eight-month trend of increasing inflation. Core inflation in the United States has risen by 4% since August 2020, and by 3.5% in Houston.
The Washington Post reports that “as supply chains catch up with consumer demand, prices will land closer to the fed’s 2% annual target for inflation.”
Additionally, food costs in the United States rose by 3%, while food prices in Houston increased by 3.5%.
"The index for all items less food and energy increased 3.5% over the year, the largest rise since June 2016," the U.S. Bureau of Labor Statistics stated in a press release.
Regional Commissioner Michael Hirniak stated that the rise in August was mostly driven by increased energy costs, but that an increase in the index of all goods except food and energy also had a role in the increase.
The Houston Chronicle reports that “Texas, by far, consumes the most electricity in the country,” and that electricity demand in Texas “ranks first in the nation across all consumer types residential, commercial and industrial and continues to grow.”
Nationally, energy costs increased by 25%, due mainly to a rise in the price of motor fuel. However, in Houston, the energy index increased by 35.2% due to a 51.6% increase in the price of motor fuel. In addition, natural gas costs in Houston increased by 16% and electricity costs increased by 21.9%.
The Houston region is home to approximately 4,600 energy-related businesses. Nearly 100 are solar-related, 30 are wind-related and more than 60 are energy-related, according to the Citizens Environmental Coalition.
Energy production and crude oil exports, as well as growing worldwide demand for chemicals manufactured in the area, is the region's primary export drivers.
Additionally, a decommissioned landfill in Houston's Sunnyside area is being converted into the country's biggest urban solar farm, with 70 megawatts of solar panels.