Eurozone inflation eased to 2.4% in February, according to Eurostat data released on Monday. This is lower than January’s reading of 2.5%, but higher than expected by economists polled by Reuters.
Core inflation, which excludes energy, food, alcohol, and tobacco costs, came in at 2.6%. This is slightly above the previous month’s print of 2.7%.
The services inflation reading, which has been sticky lately, eased to 3.7%, down from 3.9% last month.
Energy prices slowed sharply, rising just 0.2% in February compared to 1.9% in January. This suggests a slowdown in energy price hikes.
Analysts welcomed the decline in headline inflation, but warned that it might not last due to expected rises in energy and food prices. Eurostat’s data is also being watched closely given ongoing geopolitical tensions, which could impact inflation and economic growth.
The European Central Bank (ECB) meets later this week to make its next interest rate decision. Analysts expect another 0.25% cut in rates, which would mark the sixth reduction since June. Markets will be closely watching the ECB’s statement for clues on policymakers’ assessment of inflation and monetary policy restrictions.
Source: https://www.cnbc.com/2025/03/03/euro-zone-inflation-february-2025.html