Euro area industrial production falls on a yearly basis but gains on a monthly basis
Industrial Production in the eurozone fell by 2.1% and one percent in the EU in March on a yearly basis, posting the third consecutive decline. On a monthly basis, industrial production was up by 0.2% in the euro area and by 0.8% in the EU, with the highest monthly increases being Denmark, Bulgaria and Poland, while Belgium, Estonia and Sweden being the largest decreases.
In March 2026, compared with March 2025, industrial production decreased by 2.1% in the euro area and by 1% in the EU with Ireland, Luxembourg and Malta being the largest decreases, while Denmark, Latvia and Greece having the highest increases.
Higher energy costs lead to higher inflation in the US
The US inflation rose to 3.8% in April, with ongoing tensions in the Middle East continuing to push up energy prices and everyday costs for Americans. This print recorded the highest reading since inflation hit 4% three years ago. Energy prices increased by 3.8% during the month, while gas prices were up 28.4% year-on-year.
Excluding volatile food and energy components, core consumer prices rose by 0.4% month-on-month in April, and 2.8% on a year-on-year basis. This reading showed relatively subdued increases which suggest that the recent surge in energy costs has not yet broadly filtered through to other prices.
UK GDP figures show unexpected growth in the region
The UK economy grew 0.6% during the first three months of 2026, up sharply from growth of 0.1% during the final three months of last year and 1% compared with the same quarter in 2025 making. On a monthly basis, the UK economy expanded by 0.3%, according to data released by the Office for National Statistics.
Growth was supported by production and construction, which held up well amid higher energy costs. Chancellor Rachel Reeves welcomed the unexpected economic growth as evidence that the government is pursuing the “right economic plan”.
This article does not constitute legal and, or financial advice and is being issued for information purposes only by Bank of Valletta plc, 58, Zachary Street, Valletta. Bank of Valletta is a public limited company regulated by the MFSA and is licensed to carry out the business of banking and investment services in terms of the Banking Act (Cap.371 of the Laws of Malta) and the Investment Services Act (Cap.370 of the Laws of Malta).
