The annual inflation rate in the euro area rose to 2.5 % in March 2026, according to Eurostat, a sharp jump from 1.9 % in February. Year‑on‑year prices increased by 1.2 percentage points compared with the previous month.
Core inflation – the rise in prices excluding energy, food, alcohol and tobacco – was 2.3 % in March, down from 2.4 % in February. This core figure is closely watched by the European Central Bank as it seeks to keep inflation at its 2 % target.
Component‑level data show that energy costs were the largest contributor, at 4.9 % in March versus -3.1 % a month earlier. Services followed at 3.2 % (3.4 % in February), while food, alcohol and tobacco rose 2.4 % (2.5 % in February). Non‑energy industrial goods increased only 0.5 % (0.7 % in February).
Eurostat’s country‑specific rates vary: Italy and Cyprus recorded the lowest inflation, each at 1.5 %. Croatia was higher, at 4.7 %. In Germany Eurostat estimates 2.8 % inflation using one methodology, whereas the Federal Statistical Office reported 2.7 % the day before.
