Inflation in Euro zone soars past European Central Bank’s 2% target as surging oil & gas costs 

Euro zone inflation soared past the European Central Bank’s 2% target this month as surging oil and gas costs drove up headline prices amid the evolving West Asia conflict. It is the steepest jump in inflation since 2022. Overall inflation in the 21 countries sharing the euro currency jumped to 2.5% ‌in March from 1.9% a month earlier. Figures showed energy prices increased 4.9% in March compared to a 3.1% decline in February. The European Central Bank is now debating whether to raise interest rates to prevent this surge from becoming entrenched in the price of other goods and services. 
 
Russia has cut off most of its natural gas supplies to Europe. Meanwhile, Iran has severely disrupted tanker traffic through the Strait of Hormuz – a key waterway that normally carries about 20% of the world’s oil and gas after US-Israeli joint strikes. This has raised concerns about significantly tighter global fuel markets in the weeks and months ahead.