CdM | Eurozone inflation remains below the European Central Bank (ECB) target despite rising two tenths of a percentage point in February, when the Consumer Price Index (CPI) stood at 1.9%, according to preliminary estimates published by Eurostat, the statistical office of the European Union (EU). The figure exceeds forecasts.
Among the main components, services continue to have the highest annual rate in February. Their cost rose by 3.4%, compared to 3.2% in January. Behind them are food, alcohol and tobacco, which remain at 2.6%. In addition, non-energy industrial goods rose by 0.7%, three tenths more.
Meanwhile, the price of energy fell by 3.2%, compared with a 4% drop in the previous month.
By country, the lowest annual rates were in Cyprus (0.9%), France (1.1%) and Belgium (1.4%), while the highest annual rates were in Slovakia (4%), Croatia (3.9%) and Lithuania and Estonia (both 3.2%).
As for the core inflation rate, i.e. excluding the impact of energy, food, alcohol and tobacco, it rose by two tenths of a percentage point in February to 2.4%, also above estimates.
Ahead of the March meeting, at its last meeting in early February, the ECB decided not to surprise the market and left interest rates unchanged for the fifth consecutive meeting, at 2%, where they have stood since last June, given an outlook that ‘remains uncertain’.
The organisation’s macroeconomic projections include average headline inflation of 1.9% in 2026, 1.8% in 2027 and 2% in 2028. Inflation was revised upwards for 2026, mainly because experts now expect inflation in services to decline at a slower pace. For underlying inflation, the projections are for an average of 2.2% in 2026, 1.9% in 2027 and 2% in 2028.
