"Cheap Energy"

I heard this phrase from a guest on CNBC today. Perhaps it is time for a refresher course on the meaning of the word cheap.

The Free Dictionary: Cheap

a. Relatively low in cost; inexpensive or comparatively inexpensive.

Let's attempt to compare the cost of energy to the cost of everything to find out how relatively low in cost energy actually is. The following chart shows the annual average of the consumer price index for energy divided by the consumer price index for all items.


Click to enlarge.

Did I somehow manage to transport myself to a Pulp Fiction alternate universe? It's sure starting to feel that way lately.

Say "cheap energy" one more time! I dare you!

See Also:
The Pulp Fiction of Rising Interest Rates

Source Data:
St. Louis Fed: Custom Chart