Weak weather-driven demand and robust production intersected this winter to depress natural gas prices, deflating market bulls. But lower heating costs contributed to falling inflation levels, saving consumers money and supporting expectations for continued economic growth in 2024.

The U.S. Department of Labor said Tuesday its Consumer Price Index (CPI) increased at a rate of 3.1% in the 12-month period through January. That was down from 3.4% the prior month and 6.5% at the end of 2022.

Inflation surged to a 40-year peak of 9.1% in mid-2022, in part because of lofty natural gas and other energy costs in the wake of Russia’s invasion of Ukraine early that year. The war – and Western opposition to it – led to both sanctions against the Kremlin and Russian retaliation. The...