Since the beginning of March, the Eurozone has recorded the highest inflation rates in recent years. This is due to a significant rise in oil and gas prices caused by the war in Iran. Economists predict that the European Central Bank may be forced to raise interest rates to curb the rising costs of goods and services.
This is reported by Finway
“Consumer prices in March increased by 2.5% compared to last year, marking the highest level since early 2025”.
Inflation Dynamics and Market Expectations
According to official data, core inflation, which excludes fluctuations in food and energy prices, has decreased to 2.3%. The cost of services has also shown a slight slowdown in price growth.
In the bond market, the yield on German securities has risen to 3.02%, nearly matching historical highs. Analysts expect that the ECB may raise interest rates two to three times this year, with the first decision likely coming as soon as next month.
Situation in Individual Eurozone Countries
Italy is demonstrating relative stability with an inflation rate of 1.5%. In France, consumer prices have risen but have not exceeded 2%. Meanwhile, Germany and Spain have recorded more active inflation growth at 2.8% and 3.3%, respectively.
Further price increases may intensify pressure on the ECB and compel regulators to make new financial decisions to contain inflation.
It is worth noting that in February 2026, inflation in Ukraine accelerated to 7.6% year-on-year, while monthly consumer prices increased by 1.0%, according to data from the State Statistics Service.