Euro zone inflation February 2024

Inflation within the 20-nation euro zone eased to 2.6% in February, flash figures confirmed on Friday, however each the headline and core figures had been increased than anticipated.

Economists polled by Reuters had forecast a headline studying of two.5%.

Core inflation, stripping out risky parts of power, meals, alcohol and tobacco, was 3.1% — above the two.9% anticipated.

The European Union statistics company stated meals, alcohol and tobacco had the very best inflation fee in February at 4%, adopted by providers at 3.9%.

Power costs, which had swollen final yr on account of Russia’s invasion of Ukraine, continued to cut back, with the speed of deflation shifting from -6.1% to -3.7%.

The headline print beforehand got here in at 2.8% in January, with additional easing anticipated after worth rises cooled in Germany, France and Spain.

Buyers are looking for clues on when the European Central Financial institution will begin to convey down rates of interest, with market pricing pointing to a June cut. But many ECB officers nonetheless stress that they want spring wage negotiations to conclude earlier than they’ve a clearer image of home inflationary pressures.

The February figures can be a blended bag for policymakers, as core inflation is holding above 3% even because the headline fee strikes towards the ECB’s 2% goal. Worth rises have nonethless cooled considerably from their peak of 10.6% in October 2022.

The ECB should additionally cope with financial stagnation within the euro zone, after the bloc narrowly avoided a recession final yr, posting flat gross home product development within the fourth quarter.

European inventory good points moderated following the inflation print, buying and selling 0.2% increased down from 0.5% earlier within the morning. The euro was flat in opposition to the U.S. greenback and the British pound.