2022 was a wild year. We witnessed a surge in global inflation unlike anything we had seen in decades, and various commodities saw significant price increases.

One of those commodities was natural gas. As our chart of the week above shows, natural gas prices soared to record-high levels after Russia invaded Ukraine on February 24, 2022.

Specifically, this chart shows the S&P GSCI Natural Gas Euro Index, which is an index that tracks the prices of European natural gas. The series peaked in August, as Russia’s war in Ukraine was a major shock to a European economy that relied heavily on a steady flow of affordable Russian natural gas.

However, due to some good policy moves and a little bit of luck, European natural gas prices have tumbled in recent months and are now back to pre-war levels. This will hopefully provide a glimmer of hope for consumers who have been hit hard in recent months by higher energy bills.

The bottom line? Energy prices and their effect on overall inflation was a major economic issue in 2022, and it will likely continue to be an interesting issue to watch for in 2023.


This is intended for informational purposes only and should not be used as the primary basis for an investment decision.  Consult an advisor for your personal situation.

Indices mentioned are unmanaged, do not incur fees, and cannot be invested into directly.

Past performance does not guarantee future results.