Economic Bulletin

2026

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This Economic Bulletin provides an overview of the euro area's economic, financial, and monetary developments, with a particular focus on the impact of the war in the Middle East.

* **Economic Activity:** The euro area economy showed some momentum at the start of 2026, but momentum has weakened due to the war in the Middle East, leading to a marked deterioration in confidence.
* **Prices and Costs:** Headline inflation rose to 3.0% in April 2026, driven by surging energy prices caused by the war in the Middle East.
* **Financial Market Developments:** Financial markets in the euro area experienced pronounced volatility during the review period, with uncertainty surrounding the war in the Middle East triggering an initial risk-off repricing.

Tags: Euro area, economy, inflation, financial markets, monetary policy

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