Energy prices in the EU have risen by 80 per cent
Riccardo Annandale, Unsplash
According to Eurostat, energy prices in the European Union remained stably high in 2024, despite minor fluctuations. In December 2024, the domestic energy price increased by 1.3 per cent compared to the previous month, but decreased by 1.4 per cent compared to December 2023. However, EU energy prices increased by 80.3 per cent between January 2021 and December 2024, underlining the ongoing impact of the energy crisis.
Electricity and gas prices increased 1.6 per cent in December 2024 compared to November, but remained 0.4 per cent below December 2023 levels. At the same time, the cost of oil and natural gas production rose 1.6 per cent between November and December 2024 and 7 per cent over the year, reflecting global fluctuations in commodity markets.
The increase in energy prices in the EU was caused by several factors. First of all, the effects of the energy crisis that started in 2021, as well as fluctuations in the global oil and gas markets. Despite a slight decrease in prices at the end of 2024, the overall level remains high due to ongoing geopolitical risks and supply instability.
High energy prices put pressure on production costs in industry, which may lead to further increases in the prices of final goods for consumers. This also affects inflation in EU countries, creating additional challenges to economic stability.
The data were obtained using the Producer Price Index (PPI), which reflects monthly changes in the prices of products and services of the industrial sector. Unlike the consumer price index, which takes into account the cost of goods from the point of view of buyers, the PPI captures changes in cost at the stage of production, which makes it possible to more accurately track producers' costs and forecast future price changes.
Experts warn that despite relative stabilisation, energy prices in the EU will remain high in the medium term. This is due to ongoing geopolitical conflicts, uncertainty in energy supplies and the active transition to renewable energy sources, which requires significant investments.
