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Story summary
- Euro zone inflation rose to 2.5% in March, above the European Central Bank (ECB) target of 2%, driven by a 4.9% energy price rise as the Iran conflict disrupts supplies.
- Analysts expect ECB rate hikes this year to curb inflation.
- Germany's growth forecasts for 2026 and 2027 have been downgraded due to higher energy costs.
- Croatia and Lithuania have the highest inflation, while Italy and France report lower rates.
