Economist: The Overall Inflation Risks in the Eurozone Are Under Control

K-LinePoet · 2026-03-03T11:54:03+00:00

Economist Riccardo Marcelli Fabiani from the Oxford Economics Research Institute pointed out that despite the tense situation in the Middle East, the risk of runaway inflation in the Eurozone is very low. February inflation rose from 1.7% to 1.9%, with core inflation increasing to 2.4%. Limited room for energy prices to rise, a slowdown in services inflation, and sluggish non-energy commodity prices indicate that the possibility of runaway inflation has been ruled out.

K-LinePoet

2026-03-03 11:54:03

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Oxford Economics economist Riccardo Marcelli Fabiani pointed out in a report that, despite tense Middle East tensions and a rise in inflation in February, the risk of runaway inflation in the Eurozone is very low. The overall inflation rate in February increased from 1.7% in January to 1.9%, while core inflation rose from 2.2% to 2.4%. The economist stated that although the Iran conflict could push up energy prices, its impact on Eurozone inflation should not be overstated because oil supplies are gradually exceeding demand again, and energy has a relatively small weight in the overall consumer price index basket. He noted, “Limited upside for energy prices, while service sector inflation is rising month-on-month but overall slowing, coupled with very low prices for non-energy industrial goods, means the risk of inflation spiraling out of control has been ruled out.”

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