High energy costs drove US inflation to 3.7% in September, its first annual rise since May, intensifying pressure on households ahead of midterm elections. Energy prices surged 20.4%, while core inflation hit 2.6%. The war in Middle East continues to ripple through global energy markets, with diesel prices set to rise again, warns the IEA.
Despite rapid growth in solar and wind generation, renewable energy has not lowered consumer power bills, according to a Bloomberg NEF report. While renewables have depressed wholesale prices in some markets—like Spain’s negative pricing during peak solar hours—they rarely set clearing prices, leaving fossil fuels to dominate marginal pricing. In Europe, gas and coal set prices 58% of the time; in the UK, 60%; in Australia, 65%; and in PJM, 60%.
US electricity costs rose 33% from 2019 to 2025; EU prices are 31% above their 2019–2021 average. Curtailment—forced reduction.
Source: Financial Times Companies · Summarized by HeadlinesBriefing