by Calculated Risk on 2/09/2022 09:25:00 AM

During the early stages of the pandemic, energy expenditures as a percentage of PCE hit an all-time low of 3.3% of PCE. Since then, energy expenditures have increased. Here is an update through the December PCE report.

Below is a graph of expenditures on energy goods and services as a percent of total personal consumption expenditures through December 2021.

This is one of the measures that Professor Hamilton at Econbrowser looks at to evaluate any drag on GDP from energy prices.

Click on graph for larger image.

Data source: BEA.

The huge spikes in energy prices during the oil crisis of 1973 and 1979 are obvious. As is the increase in energy prices during the 2001 through 2008 period.

In general, energy expenditures as a percent of PCE have been trending down for years.

In December 2021, energy expenditures as a percentage of PCE had increased and were at 4.3% of PCE.  

This is above the pre-pandemic level in early 2020, but below the levels in 2018.