A wave of winter storms sweeping across the U.S. is colliding with the highest energy costs in years, forcing households to make tough financial and lifestyle choices as temperatures plunge, Bloomberg writes.
Consumer prices for electricity and piped gas rose 7.7% in December from a year earlier—nearly three times the pace of overall inflation—pushing home heating costs sharply higher.
Industry estimates show U.S. households are on track to spend about $995 on heating this winter, up more than 9% from last year. In some regions, power prices have hit all-time highs, fueled in part by surging electricity demand from artificial intelligence data centers and constrained grid capacity.
The spike in utility bills is adding pressure to families already strained by elevated food and housing costs, prompting cutbacks on heating and other household spending. Policymakers and grid operators are facing growing scrutiny as energy affordability becomes a more prominent economic and political issue amid continued cold weather and volatile power markets.
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