20:56 31 March 2026
Inflation in eurozone clearly accelerating as energy prices surge
Inflation in the eurozone is rising again, reaching 2.5% y/y in March 2026, above the 2% target of the European Central Bank. The increase is mainly driven by higher energy prices, as the Middle East conflict pushes up oil and gas costs.
Core inflation eased slightly to 2.3%, but risks remain high. More expensive energy may spill over into other prices and wages, raising the risk of a wage price spiral.
Economic growth expectations are weakening as higher energy costs reduce activity. The ECB, led by Christine Lagarde, is under pressure to act. Markets expect possible rate hikes of 0.75 percentage points in 2026, with decisions potentially starting in spring.
(pb.pl)
