US EditionEuro zone inflation jumps to 3% as economic growth almost stalls
Euro zone consumers sharply raised inflation expectations as energy prices surged, with the European Central Bank weighing whether the shock will become persistent.
- 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.
46 Articles
46 Articles
The sharp rise in oil prices from the war with Iran raised inflation in Europe in April, while growth continued to fall below expectations, in a combination of concern for both consumers and policy makers at the European Central Bank.
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 …
Eurozone economy nearly stalls in Q1 2026 as inflation jumps amid Middle East war
Eurozone economic growth dropped to near zero in the first three months of 2026 as surging energy costs triggered by the Middle East war pushed inflation sharply up in April
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.
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