In March 2026, annual inflation in the euro‑area rose sharply to 2.5 per cent-a jump from 1.9 per cent in February-according to Eurostat, which noted a 1.2 per cent rise over the previous month. The core inflation rate, which excludes energy, food, alcohol and tobacco, fell to 2.3 per cent in March from 2.4 per cent in February. The European Central Bank keeps a close eye on this core figure as it strives to maintain inflation at 2 per cent.
Breaking down the components, energy prices led the increase with a 4.9 per cent annual rise, compared with a 3.1 per cent decline in February. Services followed at 3.2 per cent (down from 3.4 per cent), food, alcohol and tobacco increased 2.4 per cent (slightly less than 2.5 per cent in February), and non‑energy industrial goods added 0.5 per cent (down from 0.7 per cent).
Eurostat reported the lowest inflation rates in Italy and Cyprus, each at 1.5 per cent, while Croatia’s rate was 4.7 per cent. Germany’s figure from Eurostat was 2.8 per cent, calculated with a different methodology than the German Federal Statistical Office, which had reported 2.7 per cent on the day before.