When Will Energy Prices Fall?

This has been a popular question for consumers recently! Inflation over time has been part of life but in May 2022, the annual inflation rate in the US unexpectedly accelerated to 8.6% which is the highest since December of 1981 according to Trading Economics. There was also a reported rise in energy prices of 34.6% which is the most since 2005. Additionally, gasoline had a rise of 48.7%, fuel oil +106.7%, electricity +12%, and natural gas +30.2%. We also have food costs surging, cost of shelter, used cars and trucks, and airline fares all at record highs. Federal Reserve Chairman Jerome Powell has voiced U.S. central bank’s determination to put a halt on the hottest inflation in 40 years. He is saying “it is imperative for the global financial system for consumer prices to stabilize”. These comments were just days after the Fed voted to raise its benchmark interest rate by 75 basis points for the first time since 1994. This just shows how serious policymakers are about challenging the inflation crisis after a series of alarming economic reports. This will then put the key benchmark federal funds rate at a range of 1.5%-1.75% which is the highest since the beginning of the pandemic 2 years ago. According to Fox Business, officials expect the benchmark federal funds rate to hit 3.4% by the end of the year and 3.8% by the end of 2023.

According to Stephen Schork, principal of The Schork Group on “Mornings with Maria” regarding the recession, the impending recession is “unavoidable” for the country. With this he says “Energy prices are going to fall. The bad news is they’re going to fall because of the recession”.

Inertia Resources is the commercial and residential energy broker group that has your best interest at heart to put more money in your pocket. We are committed to keeping our customers in the know on how the market is moving, how it is going, and how you can protect yourself in the future. We have agents onsite in 13 different states who are able to sit down and meet with each client we represent. Our goal is to grow with YOU, and we believe it is imperative that you are able to be in contact with your broker at any time. Contact us today to get started!