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 greater than anticipated.

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

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

The European Union statistics company mentioned meals, alcohol and tobacco had the best inflation price in February at 4%, adopted by companies at 3.9%.

Power costs, which had swollen final yr because 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 value rises cooled in Germany, France and Spain.

Traders are attempting to find clues on when the European Central Financial institution will begin to carry down rates of interest, with market pricing pointing to a June lower. 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 might be a blended bag for policymakers, as core inflation is holding above 3% even because the headline price 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 averted a recession final yr, posting flat gross home product progress within the fourth quarter.

European inventory features moderated following the inflation print, buying and selling 0.2% greater down from 0.5% earlier within the morning. The euro was flat towards the U.S. greenback and the British pound.