Eurozone inflation rises to 2.6% as energy prices surge

Inflation in the eurozone rose to 2.6% in March, slightly higher than earlier estimates of 2.5%, according to final figures from Eurostat.

The increase marks a sharp jump from February’s 1.9% and pushes inflation above the European Central Bank’s (ECB) 2% target.

The rise was largely driven by higher energy prices, which climbed 5.1% year-on-year. This follows a decline of 3.1% in February and reflects the impact of the recent conflict in the Middle East, particularly the war involving Iran, which has pushed up oil prices.

Core inflation, which excludes energy, food, alcohol and tobacco, eased slightly to 2.3% from 2.4% in February. This suggests underlying price pressures remain more stable despite the spike in energy costs.

Across the eurozone, inflation varied widely. Romania recorded the highest rate at 9%, followed by Croatia (4.6%) and Lithuania (4.4%). The lowest rates were seen in Denmark (1%) and in Czechia, Cyprus and Sweden (all 1.5%).

In Belgium, inflation rose to 2.2% in March, up from 1.4% in February.

The latest figures have increased expectations that the ECB may raise interest rates later this year, as policymakers monitor the risk that higher energy costs could spread to other parts of the economy.

^{© JEAN-SEBASTIEN EVRARD / AFP}