Why Eurozone Rental Inflation Is Accelerating in 2026

In this episode, Lucas and Luna drill into a surprising inflation pocket: rents. While headline Eurozone inflation has eased to 3.2 percent, rental costs are running at 4.8 percent year-over-year — the fastest pace in over a decade. Lucas unpacks why ECB rate hikes are actually pushing rents higher instead of cooling them, pointing to the pass-through from mortgage costs to tenant contracts. Luna brings data from Germany's largest housing association showing a 7.2 percent rent increase in Berlin alone. They explore how tight housing supply, rising construction costs, and immigration are compounding the problem, and why this creates a headache for ECB policymakers trying to gauge underlying inflation. If you've felt the squeeze on your own rent, this episode explains why it's happening and what central banks can — and can't — do about it. #RentalInflation #EurozoneRents #ECB #Inflation #HousingMarket #EurozoneEconomy #CostOfLiving #BerlinRents #MonetaryPolicy #ConstructionCosts #Immigration #SupplyConstraint #Economics #EuropeanEconomy #FexingoBusiness #BusinessPodcast #LucasAndLuna #TheEuropeanEconomyPodcast Keep every episode free: buymeacoffee.com/fexingo