A fresh ECB survey shows Euro‑zone companies expect to lift selling prices sharply as the Iran war drives up input costs. Respondents, spanning manufacturing to services, indicated price hikes will be “substantially higher” than last year, signalling a fresh upward pressure on consumer prices. Companies cite disrupted supply lines and higher commodity bills as the main triggers for the coming year.

The price outlook matters because the European Central Bank already wrestles with inflation that has lingered above its 2 % target. Higher corporate pricing feeds into headline CPI, limiting the central bank’s room to cut rates. Analysts estimate that a 1 % rise in average selling prices could add roughly 0.2 % to inflation readings in the next quarter in the euro area economy.

Investors are watching the survey for clues on profit margins and pricing power. Firms that can pass cost hikes onto buyers may protect earnings, while those stuck with price‑sensitive demand could see margins compress. The ECB’s next policy meeting will likely weigh these corporate price signals alongside broader energy and food price trends, shaping monetary stance in the near term.