Where Inflation Is Highest In Europe In 2026<!-- -->

• Eurozone inflation has climbed to 3% year-on-year as of May 21, 2026, driven primarily by rising energy costs. • The economic surge is being hindered by an ongoing conflict with Iran, which caused confidence indicators and the composite PMI to drop below the expansion threshold in April.

• The European Central Bank (ECB) has released balance of payments and international investment position statistics for the euro area and its member nations. • The data highlights consistency in financial reporting, with 13 countries showing discrepancies below 1% of GDP and 14 countries maintaining discrepancies below 2% of GDP on the financial account side.

• Poland and Portugal experienced the strongest real household income growth in Europe over the last two years, with Spain leading among major economies. • Specific growth rates included the Netherlands at 2.3%, Portugal at 2%, Denmark at 1.9%, Greece at 1.8%, and Spain at 1.5%.

• European stocks experienced volatility on Thursday, eventually reversing initial losses to finish the trading session higher. • The market shift followed an order from Iran's Supreme Leader to keep near-weapons-grade uranium within the country.

• Euro zone economic activity shrank at its fastest rate in over two-and-a-half years during May, according to survey data released Thursday. • The downturn was driven by a war-induced surge in energy prices and living costs, which severely stifled demand for services across Europe.

• An international assessment team from the Asia-Pacific Group (APG), under the Financial Action Task Force (FATF), recently conducted field visits and discussions with Nepali authorities. • The team urged Nepal to accelerate reforms to strengthen its regulatory enforcement, prosecution, and anti-money laundering mechanisms.

• India will launch its first-ever Index of Services Production (ISP) in July to accurately measure the output of the country's critical services sector. • The new index is designed to track short-term shifts in services production, complementing the existing Index of Industrial Production (IIP).

• Global equity markets experienced a relief rally, with Asian and US indices surging due to optimism surrounding a potential peace agreement between the US and Iran. • Key gains were seen in the Nikkei 225 (+1.8%), Hang Seng Index (+0.5%), KOSPI (+0.5%), ASX 200 (+0.4%), and STI (+0.2%).

• Asian stocks rose on Friday as investors maintained optimism for a breakthrough in U.S.-Iran peace talks, despite ongoing disagreements over key issues. • The U.S. dollar reached a six-week high while oil prices experienced volatility amid the geopolitical uncertainty.

• The Indian stock market showed positive momentum on Friday, with the Sensex rising 400 points and the Nifty trading around the 23,750 level. • While broader markets like the Nifty MidCap and SmallCap indices saw marginal gains of 0.04% and 0.11%, Max Healthcare shares experienced a significant decline of 7%.

• Asian markets traded higher on Friday, led by Japan's Nikkei 225 which surged more than 2 per cent and Taiwan's market which climbed nearly 1.5 per cent. • The rally was driven by improved investor sentiment following hopes of a diplomatic breakthrough in peace talks between the US and Iran.