TEMPO.CO, Jakarta - The year 2026 has been marked by increasingly volatile geopolitical and economic conditions across the globe, including in Europe. One of the major drivers behind this instability has been the escalating conflict in the Middle East, alongside the ongoing war between Russia and Ukraine.
Erupting in February, the conflict involving Iran and the joint U.S.–Israel strikes significantly affected not only the region but also the wider global economy, largely due to the Middle East’s role as a backbone of global energy supply. With the Strait of Hormuz located within waters controlled by Iran, disruptions to one of the world’s most critical shipping routes quickly impacted international trade. The result was a sharp surge in energy costs, supply chain disruptions, and broader inflationary pressures worldwide.
A similar pattern was seen in the Russia-Ukraine war, which also triggered major spikes in global energy prices. Many European countries had long relied on Russia for natural gas, oil, and industrial metals, making the continent particularly vulnerable to external supply shocks.
These prolonged external shocks have continued to shape consumer prices across Europe. A report from Eurostat and the UK Parliament reflected that pressure, showing that inflation remained elevated in several countries, with some even posting the highest inflation rates in Europe.
With an annual inflation rate of 9.0 percent, Romania, the largest economy in Southeastern Europe, has been grappling with a threefold crisis: persistently high inflation, an economic recession that has lasted for months, and a prolonged political crisis that has complicated efforts to stabilize the economy.
At the same time, Bulgaria drew attention when it officially adopted the euro in early 2026. The move had already sparked public concern that joining the eurozone could contribute to rising consumer prices, as Visual Capitalist noted. To some extent, its inflation rate of 6.2% has reinforced those concerns.
Here’s the complete list of the top 10 countries with the highest inflation in Europe, based on year-over-year inflation rates as of April 2026.
Countries with the Highest Inflation in Europe (April 2025 – April 2026)
1. Romania – 9%
2. Kosovo – 6.5%
3. Bulgaria – 6.2%
4. Croatia – 5.4%
5. Luxembourg – 5.2%
6. Iceland – 5%
7. Lithuania – 4.9%
8. North Macedonia – 4.9%
9. Greece – 4.6%
10. Georgia – 4.6%
Read: 10 Weakest Currencies in the World, As of May 2026
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