Pace of Bay Area inflation eases a bit — yet electricity costs still soar

The inflation rate in the Bay Area eased — a bit — in June, yet despite some signs of improvement, consumer prices continue to hop higher, propelled partly by skyrocketing costs for electricity, a new report shows.

Consumer prices in the nine-county region are rising faster than the nationwide pace, the U.S. Bureau of Labor Statistics reported Thursday.

The Bay Area inflation rate rose by 3.2% on an annual basis in June, which was a modest improvement from the increase of 3.8% that the region posted in April, the federal report showed.

Nationwide, inflation rose 3% during the one-year period that ended in June, the government agency reported.

In the Bay Area, however, one of the major propellants for the ongoing rise in consumer prices was a huge jump in the price of electricity provided by utility companies such as PG&E.

The cost of electricity delivered to the home rocketed higher by an eye-popping 26.9% in June, which coincided with an interim rate increase that state regulators awarded to PG&E.

The increase in the cost of electricity in the Bay Area exceeded the pace in May when electricity prices jumped 24.4%

Prices for natural gas piped into the home by a utility such as PG&E zoomed higher by 21.7%.

Bay Area food prices were one of the hopeful components of the monthly inflation report in June.

Food prices in the Bay Area rose only 1.7% in June, which was a pace that was well below the overall inflation rate in the region.

The cost of food at home fell 0.3% last month, the report showed.

However, the cost of food consumed away from home jumped 5.2%.

Bay Area gasoline prices are showing signs of easing after two months of double-digit annual gains.

The cost of unleaded regular gasoline rose by a relatively sedate pace 2.7% in June.