Inflation was a little “hot” based on the CPI for February. It rose 3.2% year over year, which was higher than expected. It was still low compared to the pace of 8% or better two years ago. Among the reasons for this slowing was the cost of gas utilities, which dropped 8.8% last month. (This state has the lowest cost of living.)
The official designation of gas utilities is the price of natural gas used in the home. Not only have they fallen, but they are expected to fall more. According to MarketWatch, “The U.S. Energy Information Administration lowered its expectations for natural gas prices this year, citing a large surplus in storage after a mild winter curbed demand for the fuel.”
Natural gas is being produced at near-record levels. And the amount in storage facilities is near record highs.
Climate change has played a significant role. Last month was the hottest February on record. In some parts of the United States, temperatures were as much as 20 degrees Fahrenheit above long-term averages. Even ice levels on the Great Lakes hit record lows.
Where are natural gas prices going? Abundant supply and what likely will be a very warm spring are bound to keep them low.
It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.