Inflation increased in both Greece and the wider eurozone in March, according to new data, with energy prices playing a key role in the latest upward pressure on consumer costs.
In Greece, the annual inflation rate rose to 3.3% in March from 3.1% in February, while the eurozone average climbed to 2.5% from 1.9% over the same period.
The data highlights a renewed acceleration in price growth across Europe, even as the full economic impact of recent geopolitical tensions in the Middle East has yet to be fully reflected in consumer prices.
Energy prices drive inflation higher
A major factor behind the increase was a sharp reversal in energy prices. In the eurozone, energy inflation surged to 4.9% in March, compared with a decline of 3.1% in February, marking a significant shift after months of easing pressures.
Other categories showed more moderate movements. Services inflation eased slightly to 3.2%, while food, alcohol and tobacco prices rose 2.4%. Non-energy industrial goods recorded the lowest rate at 0.5%.
Policy backdrop in Europe
The inflation figures come as the European Central Bank (ECB) held interest rates steady for a sixth consecutive meeting at the end of March. Officials warned that the ongoing conflict in the Middle East is clouding both growth and inflation prospects across the currency bloc.
ECB President Christine Lagarde stressed uncertainty in the outlook but said the central bank remains equipped to manage evolving risks.
Country-level trends
In Germany, inflation rose sharply to 2.8% in March from 2% in February, in line with analyst expectations. Energy prices in Europe’s largest economy increased by 7.2% year-on-year, marking the first rise since late 2023.
France also recorded a notable uptick, with inflation climbing to 1.7% from 0.9% in February. The increase was largely driven by a rebound in energy costs, which rose 7.3% after previously declining, reflecting renewed pressure in global oil markets.
