Eurozone Inflation Confirmed at Highest Since 2023

The Euro Area’s annual inflation rate was confirmed at 3.0% in April 2026, the highest since September 2023 and significantly above the European Central Bank’s 2.0% target. Energy prices surged 10.8%, the sharpest increase since February 2023, driven by Middle East conflict-related supply constraints. Inflation also picked up for non-energy industrial goods (0.8% vs. 0.5% in March) and unprocessed food (4.6% vs. 4.2%). Meanwhile, price growth slowed for services (3.0% vs. 3.3%) and processed food, alcohol, and tobacco (1.6% vs. 1.7%). The core rate, excluding energy, food, alcohol, and tobacco, eased to 2.2% from 2.3%. Among the Eurozone’s major economies, inflation accelerated in Germany (2.9% vs. 2.8%), France (2.5% vs. 2.0%), Italy (2.8% vs. 1.6%), and Spain (3.5% vs. 3.4%), but moderated in the Netherlands (2.5% vs. 2.6%).

Euro area annual inflation climbed to 3% in April 2026, the highest since September 2023, up from 2.6% in March and slightly above market expectations of 2.9%, according to a preliminary estimate. Energy costs soared 10.9%, the most since February 2023, driven by the Middle East conflict. Also, prices rose faster for non-energy industrial goods (0.8% vs 0.5%), and food, alcohol, and tobacco (2.5% vs 2.4%). On the other hand, services inflation slowed to 3.0%, from 3.2%. The core rate, excluding volatile energy, also cooled to 2.2% from 2.3%. Among the Eurozone’s largest economies, inflation accelerated in Germany (2.9% vs 2.8%), France (2.5% vs 2%), Italy (2.9% vs 1.6%) and Spain (3.5% vs 2.4%).

The Euro Area’s annual inflation rate was revised higher to 2.6% in March 2026, the highest level since July 2024, up from a preliminary estimate of 2.5% and accelerating from 1.9% in February. The increase was largely driven by energy, with prices rising 5.1%, the first annual gain in nearly a year and the strongest since February 2023, compared to the initial estimate of 4.9%, as the conflict with Iran pushed oil prices sharply higher. On the other hand, a slowdown was seen in inflation for services (3.2% vs 3.4%), non-energy industrial goods (0.5% vs 0.7%) and food, alcohol and tobacco (2.4% vs 2.5%). Annual core inflation also edged lower to 2.3% from 2.4%, matching the initial estimate. Compared to the previous month, the CPI jumped 1.3%, the most since October 2022. Considering the bloc's largest economies, inflation rose in Germany (2.8% vs 2%), France (2% vs 1.1%), Italy (1.6% vs 1.5%), Spain (3.4% vs 2.5%) and Netherlands (2.6% vs 2.3%).