Eurozone inflation jumps
Eurozone inflation hit 2.5%, driven in part by a 7.3% surge in petroleum prices that pushed France’s inflation to 1.7% — its highest since Aug 2024 ( ). Analysts warn energy and supply shocks from regional conflicts are keeping upside pressure on headline inflation (x.com).
Eurostat’s flash estimate, published March 31, showed a month-on-month rise of 1.2% for consumer prices in March and marked a clear rebound from February. (ec.europa.eu)) Eurostat flagged energy as the largest contributor to the monthly jump, with energy’s annual rate moving into positive territory while services inflation slowed to about 3.2%. (ec.europa.eu)) France’s statistics office INSEE issued a provisional March CPI estimate on March 31 and said the increase was driven by a sharp rebound in energy prices, singling out petroleum products in its commentary. (insee.fr)) Germany’s federal statistics office released preliminary March figures showing German HICP inflation around the mid‑2% range and reporting a double‑digit lift in energy‑related price contributions compared with recent months. (destatis.de)) ECB President Christine Lagarde told reporters in mid‑March that the Middle East conflict had become a material upside risk for near‑term inflation and that the Governing Council was ready to act if the shock persisted. (ecb.europa.eu)) Market analysts and economists said the surge in energy costs was the main driver of the surprise, calling it the steepest monthly jump since 2022 and flagging renewed expectations for tighter ECB policy. (bloomberg.com)) Germany’s leading economic institutes cut their 2026 growth outlook to roughly 0.6% from earlier forecasts, citing higher energy costs and the spillover from regional conflicts as the reason for the downgrade. (money.usnews.com))
