Mucahithan Avcioglu
16 April 2026•Update: 16 April 2026
Annual inflation in the euro area accelerated to 2.6% in March, driven in part by a sharp monthly rise in energy prices that underscored the growing impact of higher fuel costs on consumer prices amid the Middle East conflict, according to Eurostat data released on Thursday.
The figure exceeded the preliminary estimates that had shown a 2.5% increase in the consumer prices in March.
Eurostat said energy prices in the 21-country euro area rose 7% on a monthly basis in March, marking a sharp turnaround from the annual declines seen in recent months. On an annual basis, energy prices were up 5.1% in March, compared with a 3.1% drop in February.
The broader annual inflation rate in the euro area rose from 1.9% in February to 2.6% in March, while monthly consumer prices increased 1.3%. Across the EU, annual inflation climbed to 2.8% from 2.1% a month earlier.
Energy contributed 0.48 percentage points to the euro area’s annual inflation rate in March, making it the second-largest contributor after services, which added 1.49 points. Food, alcohol and tobacco contributed 0.45 points, while non-energy industrial goods added 0.13 points.
Excluding energy, annual inflation in the euro area was 2.3% in March, below the headline rate, highlighting the strength of the latest surge in fuel and utility costs.
Among major euro area economies, annual inflation stood at 2.8% in Germany, 2% in France, 1.6% in Italy and 3.4% in Spain in March.
The data came amid the backdrop of a severe energy shock after the Iran war disrupted flows through the Strait of Hormuz, a key artery for global crude and LNG trade.
Brent crude initially climbed toward $120 a barrel after the waterway’s closure before stabilizing around $100, while continued restrictions on shipping have kept supply concerns elevated even with a ceasefire.
