Eurozone inflation moderated by lower than anticipated in February regardless of quickly easing vitality costs, including to indicators that value pressures are extra persistent than beforehand thought.
Shopper costs rose 8.5% in February in contrast with the identical month a 12 months earlier, easing barely from a 8.6% annual improve in January, preliminary information from the European Union’s statistics company Eurostat confirmed Thursday.
The studying exceeds the 8.2% consensus forecast from economists polled by The Wall Avenue Journal.
The decline in inflation was pushed by moderating vitality costs, which elevated by 13.7% on 12 months in February, slowing from a 18.9% on-year rise in January.
Nevertheless, meals costs elevated 15% on 12 months, greater than the 14.1% rise a month earlier. Inflation of each nonenergy industrial items and for companies additionally gained tempo, the info confirmed.
The core annual inflation price–which strips out the extra unstable classes of meals and vitality, and one of many key information for the European Central Financial institution to think about at coverage selections–accelerated to five.6% in February from 5.3% in January, reaching a report excessive.
The European Central financial institution is anticipated to extend rates of interest by one other 50 foundation factors at its subsequent assembly on March 16 as value pressures stay excessive and the economic system has averted a recession to date.
Buyers are ramping up their expectations for the place they anticipate eurozone rates of interest to peak because of latest feedback from European Central Financial institution policymakers, excessive inflation and a comparatively resilient economic system.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
