Eurozone inflation hits 2.5% in March surpassing ECB 2% goal
Inflation in the Eurozone hit 2.5% in March 2026, topping the European Central Bank's 2% goal.
The main culprit? Energy prices shot up nearly 5%, thanks to the ongoing conflict in the Middle East, making energy more expensive and raising the risk of spillovers into other goods and services, even though core inflation actually dipped a bit.
ECB faces split over rate hikes
With living costs rising, the ECB now faces tough choices about raising interest rates, something markets expect could happen up to three times this year.
Some officials, like Bundesbank's Joachim Nagel, want to act fast, while others urge patience.
Either way, policymakers agree the ECB must act if energy keeps driving prices up across the board, action is on the table at their big meeting on April 30.