Brussels: The annual inflation rate in the euro area reaches 2.5% in March, climbing by 0.6 percentage points from 1.9% in February, marking the highest increase since May 2022 amid ongoing tensions in the Middle East.

According to Anadolu Agency, energy prices posted the highest annual increase among sub-items, with a rise of 4.9% since February 2023, as reported by Eurostat on Tuesday. This significant uptick in energy costs has been a major contributor to the overall inflation surge.

Services followed energy with a 3.2% annual inflation rate, which is a slight decrease from 3.4% in February. The cost of food, alcohol, and tobacco rose by 2.4% in March, indicating a minor drop from the 2.5% rate in the previous month.

Prices for non-energy industrial goods experienced a 0.5% inflation rate in March, falling from 0.7% in February. This decline marks a continued trend of reduced inflation in this category, contrasting with the broader inflationary pressures observed in other sectors.