Energy costs push Eurozone inflation to 2.5% in March

Inflation in the euro area rose to 2.5% year-on-year in March, up from 1.9% in February and marking its highest level since January 2025, according to preliminary estimates from Eurostat, as energy prices increased.Eurostat said the bloc’s consumer price index continued its upward trend last month, driven primarily by higher energy costs, amid volatility in global oil and gas markets.The reading came in slightly below economists’ expectations, with forecasts ranging between 2.6% and 2.7%, pointing to a modest gap between initial estimates and market expectations.Core inflation, which excludes volatile energy and food prices, remained broadly stable compared to the previous month, despite ongoing price pressures in parts of the services sector.The data comes as policymakers at the European Central Bank (ECB) continue to closely monitor inflation developments to assess whether current pressures are temporary or more persistent, a key factor shaping the outlook for interest rates. 

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