The European Union (EU) saw a 1.3% rise in domestic energy producer prices compared to January. However, prices were down 1.4% year-on-year (YoY), according to Eurostat data. Energy prices experienced a significant surge from January 2021 to December 2024, increasing by 80.3% during this period. Specifically, electricity and gas prices saw a monthly increase of 1.6%, although they were 0.4% lower than in December 2023.
Crude petroleum and natural gas extraction prices also rose by 1.6% in December compared to November, with a 7% increase YoY. This uptick in energy prices, especially in petroleum and natural gas, has impacted various sectors across the EU, including manufacturing and transportation. This pattern is also seen to continue in 2025.
Despite the recent rise, energy prices remain volatile, influenced by factors such as global energy demand and geopolitical events. The fluctuations in energy costs have raised concerns, particularly with the potential for continued price instability throughout 2025. Energy producers and consumers alike are closely monitoring these shifts, as they could impact both economic growth and inflation rates in the EU. As a result, stakeholders are adjusting their strategies to mitigate the impact of rising energy costs on production and consumption.
