The inflation rate in the Eurozone lessened in February, largely due to a decrease in energy prices, as revealed by the final data from Eurostat on Monday. The Harmonized Index of Consumer Prices (HICP) recorded an annual rise of 2.6%, following an increase of 2.8% in January. These figures are in accordance with preliminary estimates released on March 1.
Excluding energy, food, alcohol, and tobacco from the equation – the core inflation – saw a drop from 3.3% to 3.1% in a month. In terms of monthly augmentation, the HICP noted a 0.6% gain in February, supporting the original forecast. The European Central Bank (ECB) staff predicts an average inflation of 2.3% this year, 2.0% for 2025, and 1.9% for 2026.
During the last governing council meeting in March, the decision was made to keep its benchmark rates unchanged. The bank noted that while most measures of underlying inflation have eased, domestic price pressures remain high due to strong wage growth.
Core inflation, when energy and food are excluded, is projected to average 2.6% this year, 2.1% in 2025, and 2.0% in 2026. The data indicates that services were the major contributor to annual inflation, as the cost of services increased by 1.7%. This was followed by food, alcohol, and tobacco which saw a 5.6% rise. Non-energy industrial goods prices saw a 2.0% boost, while energy prices sharply fell by 6.1%.
In the EU27, the annual inflation rate was 2.8%, a decline from 3.1% in January. Latvia, Denmark, and Italy reported the lowest annual rates, while the highest were observed in Romania, Croatia, and Estonia.
