Europe’s Cost of Living Is Rising Again as Inflation and Energy Prices Climb
For a while, it looked like Europe had moved past the worst of the inflation squeeze. The panic had faded, the headlines felt calmer, and many people assumed the pressure on household budgets was finally easing. But the latest numbers point in a different direction. Euro area inflation rose to 2.5% in March 2026, up from 1.9% in February. Energy prices climbed 4.9% year over year, while services inflation reached 3.2% and food, alcohol, and tobacco rose 2.4%. It does not look like a crisis yet. But it does look like life is getting more expensive again.
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