Inflation in the Eurozone rose unexpectedly during February, just before a fast-moving war in the Middle East threatens to reignite a new energy shock for Europe.
According to the European Commission, euro area annual inflation is expected to be 1.9% in February 2026, up from 1.7% in January.
Economists had expected the rate to hold steady.
On a monthly basis, consumer prices rose 0.7%, the strongest since March 2024.
Core inflation, which excludes energy and food, climbed to 2.4% from 2.2%, also above expectations.
Energy inflation was -3.2%, compared to -4.0% in January.
This data was gathered before the latest escalations in the Middle East, which are poised to disrupt energy markets.
The European Central Bank chief economist, Philip Lane, warned that a prolonged war could push up eurozone inflation and weigh on growth, while stressing that the medium-term outcome will depend on the conflict’s scope and duration.
This comes as a senior commander of the Iranian Revolutionary Guard Corps announced to block shipping through the Strait of Hormuz, where 20% of global crude oil and natural gas is shipped.
