After climbing 0.8% in June, retail sales were almost unchanged in July, according to Commerce Department data|APK|CC BY-SA 3.0

Falling gasoline prices at the pump have been offset by skyrocketing prices of natural gas, which, on Wednesday, were flirting with levels unseen since 2008.

While the national average for gas, as of Wednesday, was $3.94 a gallon—down 21% from its $5.02 peak in June—natural gas futures were hovering well over $9 per million British thermal unit (BTU), up about 70% since the end of June.

And since June 2020 when COVID-19 was at its peak, natural gas is up a jaw-dropping 525%—it closed at about $1.5 two years ago.

Much of the summer spike is due to the high demand as Americans crank up their air conditioning in scorching temperatures.

Retail sales flat
Meanwhile, retail sales—a major indicator of the strength of an economy—were almost unchanged in July after climbing 0.8% in June, the Commerce Department said on Wednesday. 

US retail sales fell flat because of a slump in gasoline and auto sales, which dropped by 1.8% and 1.6% respectively, the department said.

Recession still at bay
If gasoline and auto sales are set aside, retail sales rose a solid 0.7%.

“Despite the flat headline reading, the core retail sales figures in July show the consumer has staying power” heading into the third quarter, said Kathy Bostjancic, chief economist at Oxford Economics.