Inflation jumps to 3.6% as energy prices surge

Michael Bolton

Inflation has increased annually by 3.6 per cent in March, figures from the Harmonised Index of Consumer Prices show.

This is an increase of 2.5 per cent in February.

The jump was driven by energy prices, which rose by 11.1 per cent in the month and were up by 12.3 per cent over the 12 months to March.

The Central Statistics Office (CSO) say this is driven by the war in the Middle East.

Iran’s effective closure of the Strait of Hormuz has halted global shipments of oil and gas through the channel, triggering a sudden surge in energy prices.

Food prices are estimated to have decreased by 0.3 per cent in the last month and increased by 2.3 per cent over the last 12 months.

Service prices have risen by 0.9 per cent in the month and are up by 3.3 per cent in the 12 months to March 2026.

Excluding energy and unprocessed food, the HICP is estimated to have grown by 2.6% since March 2025.

Eurostat will publish the March flash estimates of inflation from the EU HICP for the Eurozone on Tuesday.