US EditionEuro zone inflation jumps to 3% as economic growth almost stalls
Energy costs from the Iran war pushed annual inflation to 3.0% and left euro zone growth at 0.1%, increasing pressure on the European Central Bank.
- On Thursday, Eurostat reported euro zone annual inflation rose to 3.0% in April from 2.6% in March, while preliminary data showed the economy expanded by a marginal 0.1% in the first quarter.
- Fallout from the Iran war has effectively blocked the Strait of Hormuz, pushing global crude oil above $120 per barrel and driving a 10.9% surge in energy prices that fueled the inflation spike.
- The European Central Bank's Consumer Expectations Survey showed consumers' one-year inflation expectations jumped to 4.0% in March from 2.5%, raising concerns that price growth could become embedded in wage and spending decisions.
- Policymakers at the European Central Bank are widely expected to hold benchmark rates steady on Thursday, though financial markets are pricing in an 85% chance of rate hikes by June.
- Economists fear Europe faces a period of 'stagflation'—low growth, rising inflation, and unemployment—as the ongoing energy crunch dents business and consumer confidence across the region.
29 Articles
29 Articles
The eurozone is gradually approaching a stagflationary crisis due to economic paralysis and the shocking rise in prices due to the war in Iran. The latest data published by the European Commission’s statistical portal, Eurostat, reveal that the gross domestic product (GDP) of these countries increased by only 0.1% in the first quarter, while inflation skyrocketed to 3%. Thus, the energy crisis due to the Middle East conflict is hitting hard the …
kreiszeitung.de
The European Central Bank is under pressure: Due to the Iran war, inflation is rising to 3 percent. The ECB now has to decide whether to increase interest rates.
As a net energy importer, Europe is more exposed to high energy prices, driven by conflict in the Middle East, than the US.
Spain once again led among the region’s major economies, with an expansion of 0.6%, while the first economy in the euro zone, Germany, grew by 0.3% and France slowed down. The Middle East war drags Europe into stagflation Inflation in the euro zone has increased to 3% in April, while economic growth reached only 0.1% in the first quarter of 2026 due to the impact of energy prices caused by the conflict in the Middle East, according to data provi…
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