Inflation in eurozone increased even before US attack on Iran

Concerns about rising inflation in the eurozone have intensified amid the US–Iran conflict and higher energy prices. In February, annual inflation rose to 1.9%, exceeding expectations of 1.7%, while monthly prices increased 0.7%, the sharpest rise since March 2024. Core inflation also surprised to the upside at 2.4% y/y.

Price pressures strengthened especially in services, where inflation climbed to 3.4%, and in non-energy industrial goods. Although energy prices continued to decline, the drop slowed to 3.2%. ECB Chief Economist Philip Lane warned that a prolonged conflict could further raise inflation and weaken growth. Gas prices in Europe have surged nearly 30%, while oil prices rose more than 6%, pushing fuel costs higher.

(pb.pl)