CdM | Eurozone inflation remains below the European Central Bank (ECB) target despite rising by two tenths of a percentage point in February. The Consumer Price Index (CPI) stands at 1.9%, according to figures published by Eurostat, the statistical office of the European Union (EU). The figure is in line with market estimates.
By component, services, food, alcohol and tobacco, and non-energy industrial goods contributed positively to the eurozone’s annual inflation rate, whilst energy contributed negatively.
In detail, services continued to have the highest annual rate in February. Their cost rose by 3.4%, compared with 3.2% in January. Behind them are food, alcohol and tobacco, which rose by 2.5%, one-tenth of a percentage point less than in the previous month. Furthermore, non-energy industrial goods rose by 0.7%, compared with 0.4% in January.
Meanwhile, energy prices fell by 3.1%, compared with the 4% decline recorded in the previous month.
By country, the lowest annual rates were recorded in Denmark (0.5%), Cyprus (0.9%) and the Czech Republic (1%), whilst, conversely, the highest annual rates were recorded in Romania (8.3%), Slovakia (4%) and Croatia (3.9%).
As for the core inflation rate—that is, the rate excluding the impact of energy, food, alcohol and tobacco—it rose by two-tenths of a percentage point in February to 2.4%, in line with estimates.
The ECB is holding another meeting this Thursday. All forecasts suggest that the European central bank will keep interest rates unchanged at 2%, as analysts agree that the war in the Middle East rules out any possibility of a cut.
