Iran war pushes eurozone inflation rate to 2.5%

Published
2026/03/31 14:23 (CEST)
A woman pays for her purchase with cash at the checkout in a fruit and vegetable store. Marcus Brandt/dpa

Inflation in the eurozone has risen sharply following the surge in oil prices triggered by the US-Iraeli war against Iran.

Year-on-year, consumer prices rose by 2.5% in March, according to a preliminary estimate released by the statistics office Eurostat in Luxembourg on Tuesday. In February, the inflation rate stood at 1.9%.

Economists had expected an even slightly higher increase, around 2.6% on average.

The European Central Bank (ECB) aims for an annual inflation rate of 2% in the medium term.

Compared with February, prices rose by 1.2%. Analysts had anticipated a rise of 1.3%.

"The massive rise in energy prices has catapulted inflation upwards in March," said Commerzbank chief economist Jörg Krämer. "By May at the latest, it is likely to exceed 3%."

If that happens, high energy costs would also drive up the prices of many other goods, pushing up core inflation - which excludes volatile food and energy prices - and had not yet risen in March.

"The rising inflationary pressure suggests the ECB will raise its key interest rates in April or June at the latest," Krämer added.

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