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In Germany and Spain, inflation in April rose to multi-year highs, driven by surging energy prices linked to tensions in the Middle East, according to The Wall Street Journal.
In Germany, consumer prices were 2.9% higher year-on-year, with EU-harmonized inflation reaching 2.8% in March and climbing to its highest level since January 2024. Energy prices jumped 10.1% compared with the same month last year, marking the strongest increase since early 2023.
In Spain, inflation rose to 3.5% in April, up from 3.4% in March, the highest level since mid-2024.
The report notes that energy markets have been under pressure following escalating conflict involving Iran, with oil prices rising sharply amid uncertainty over shipping routes such as the Strait of Hormuz. Brent crude reportedly climbed above $110 per barrel, while financial markets and the European Central Bank warned of continued inflation risks if energy prices remain elevated.
The European Central Bank indicated it stands ready to act if necessary, but is currently assessing how sustained energy inflation could affect broader price growth and wages across the eurozone.
