Electricals Price Index
Our electricals price index is a tool that can be used to understand whether the cost of electricals in the United States are increasing or decreasing.
The price of electricals has increased by 0.22% over the last 12 months. The biggest price decreases where seen on Cookers (down 0.08%) and Fridge Freezers (down 0.05%), and the biggest increases were seen on Washer Dryers (up 0.68%) and Toasters (up 0.74%).
Monthly Price Movements
The chart below shows whether prices for electricals went up or down in each individual month. You can add data for specific categories to the chart by clicking in the table further down this page.
12 Month Average Price Trend
This chart shows the cumulative change in the price of electricals over the last 12 months. Our data shows that overall the price of electricals has increased by 0.22% in the last 12 months.
Breakdown by Category
We calculate inflation by looking at price changes for each type of electrical. We add all the categories together by using a weighted average to give more weight to the most important purchases such as washing machines and TVs, and lower weight to less important products such as bread makers.
Average Price Trend
|External Hard Drives||0.7%||0.26%|
|Optical Disc Drives||-1.1%||0.01%|
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Consumer Price Index (CPI) & Electricals
The government generates a Consumer Price Index (CPI) as one of the tools for measuring inflation. The CPI is based on a typical basket of goods that includes many categories such as food, fuel, clothing etc. One of the categories included is electricals. The CPI is calculated by comparing the price of a product today to its price in a previous reference year.
Electricals can be a difficult category in which to measure inflation as many electrical categories have very high levels of innovation. New products come to market with high ticket prices and as the technology becomes more widespread the cost of the product drops dramatically. Just think how much 50 inch HD TV would have cost a year ago and how cheap they are today.
Kagoo collects millions of historical price data points on thousands of electrical products. We display these price changes in price history charts on each of our product pages. Many of these charts show steep price drops since the product was launched.
How Does Kagoo Calculate Inflation?
The price of most electricals is constantly falling. We expect them to fall. We expect that if we wait 6 months before buying the latest shiny item then it is going to be cheaper, and if we buy last year's model it is going to be cheaper than the latest model.
Therefore we can't simply say that because last year's TV is now 50% cheaper that means that the price of TVs has halved. The electricals market is also highly seasonal with big discounts around Black Friday and Christmas. If not handled carefully, these events can also distort the true level of inflation in electricals.
In order to generate a representative assessment of whether the price of electricals is increasing or decreasing we take the rate at which prices are currently falling for each type of electrical and compare this to the seasonal average price reduction rate. By comparing these rates we can make quantitive assessment of whether prices of electricals are going up or down.
We calculate inflation for products on a category by category basis. Within each category we use a weighted average method to determine the total for that category, and then when combining the categories we again use a weighted average method to calculate an overall trend for electricals. This is very similar to the method used by governments in calculating the official consumer price index.