Inflation across the eurozone soared to 3% in April, driven by soaring oil and energy prices linked to the Iran war and global geopolitical tensions. This marks a steady increase from 2.6% in March and 1.9% in February.
The rise in inflation was evident in both Germany and Spain, keeping price growth in the single currency bloc above the European Central Bank's 2% target. This surge in costs coincides with a stumbling economy, as the eurozone expanded by a meager 0.1% in the first quarter of the year.
This combination of underperforming growth and rising prices creates a worrying situation for consumers and policymakers. As a result, an interest rate decision from the European Central Bank looms.