Inflation across the eurozone has soared to 3% this month as the Iran war drove up energy prices, and growth stumbles.
Consumer prices rose by 3% a year across the single currency bloc in April, new data from statistics body eurostat showed on Thursday morning, up from 2.6% in the year to March, and 1.9% in February.
That takes inflation further above the 2% target set by the European Central Bank, which is scheduled to set eurozone interest rates on Thursday afternoon.
Energy prices across the euro area surged by 10.9% year-on-year, up from 5.1% in March. Services inflation slowed to 3.0%, while food, alcohol & tobacco prices rose by 2.5% and industrial goods prices rose by 0.8%.
Eurostat also reported that growth across the eurozone slowed to 0.1% in the January-March quarter, down from 0.2% in the final three months of 2025.
Among individual countries, Germany beat forecasts with 0.3% growth in the quarter.
“Almost exactly one year after the new German government – under Chancellor Friedrich Merz – came into office, today’s data suggests that the German economy is better than its reputation implies,” said ING economist Carsten Brzeski.
“However, it would be risky to assume that today’s performance can simply be continued. The war in the Middle East and soaring energy prices, combined with a lack of structural reform and clear strategy for how to restore competitiveness, do not bode well for Germany’s growth outlook.”
However, France recorded no growth. National statistics body INSEE said foreign trade had made a negative contribution to French GDP, while household consumption had fallen with production growth sluggish.