Read our full analysis for a more in-depth look at these trends.
Will rising utility bills increase the heat on consumers?
With a cold start to the year across much of the U.S., rising utility bills are further pressuring the consumer.
February 2025
Key takeaways
- Higher U.S. wholesale natural gas prices have been pushing up the price of gas piped to the home. The January year-over-year (YoY) rate of inflation in piped gas stands at 4.9% compared to 1.9% for electricity, according to the Bureau of Labor Statistics (BLS). And with 40% of electricity generation still from natural gas, electricity prices could face upward pressure too.
- Bank of America internal deposit account data shows that the median customer utility bill payment rose 6% in January, well above the rate of inflation in utilities, likely reflecting higher usage. And that's before heating bills from the unseasonably chilly January have even hit the doormat.
- Rising utility bills tend to impact lower-income households disproportionately. As utility and other bills start to bite, lower-income households in particular could respond by pulling back on their discretionary spending.
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