Energy bills increase faster than utility prices

Summary

• Utility bill payments rose 5.3% year-over-year in August 2026.
• Consumer prices for electricity and piped gas increased by approximately 4% year-over-year as of August according to the Bureau of Labor Statistics.
• Bank of America internal deposit data indicates average electricity and gas bills rose slightly faster than official utility price inflation, increasing just over 5% year-over-year.
• The higher bill increase likely reflects heavier cooling demand during a warm summer.
• Energy bills face continued upward pressure in the fall and winter due to supplier investments in grid infrastructure and generation capacity.
• Forecasts for milder temperatures due to a significant El Niño could offset some upward pressure by reducing heating demand.
• The report utilizes aggregated and anonymized transaction data from US Retail, Preferred, Small Business, and Wealth Management clients with deposit accounts or credit cards.
• Data excludes corporate card spending and includes only consumer cardholders making a minimum of five transactions per month.
• Household income terciles are determined by quantitative estimates and periodically re-assessed based on factors like wage inflation and social security payments.
• The publication was prepared by the Bank of America Institute with contributions from Liz Everett Krisberg and David Michael Tinsley.