Euro Zone Inflation Spikes to 2.5% in March as Iran War Energy Shock Derails Disinflation - Tekedia

Euro zone inflation rose to 2.5% in March, up from 1.9% in February, with energy as the main driver.

Energy prices swung from -3.1% to +4.9% year-on-year, contributing to the overall inflation increase.

Services inflation eased to 3.2% from 3.4%; food, alcohol and tobacco inflation slipped to 2.4% from 2.5%.

Core inflation excluding food and energy remained at 2.3%.

Iran’s near-total shutdown of the Strait of Hormuz since late February has affected global oil and gas prices; the strait carries about one-fifth of seaborne crude and LNG, and U.S. LNG was nearly 58% of Europe’s imports last year.