Energy prices fell year-over-year but electricity rose annually.

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True. Overall energy prices fell 3.2% year-over-year in December 2025, driven by gasoline prices dropping 8.1% annually. However, electricity prices rose approximately 7% for the year, creating a split within the energy category. The divergence reflects different market dynamics: gasoline follows global oil prices, which declined in 2025, while electricity depends on utility infrastructure costs, fuel mix for generation and regulatory factors. Some regions saw sharper electricity increases due to extreme weather driving higher demand, aging infrastructure requiring upgrades and renewable energy transition costs. The contrast shows consumers benefited at the pump but paid more to power their homes.

Energy prices fell year-over-year but electricity rose annually.

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