Euro Area: Inflation ticks down in February

Euro Area Inflation February 2023

Euro Area: Inflation ticks down in February

Harmonized inflation declined again in February, albeit less than expected by markets, falling to 8.5% from January’s 8.6% reading. It therefore moved somewhat closer to the European Central Bank’s target rate of 2.0%.

February’s result was due to a slower increase in the prices for energy. That said, prices for services, food, alcohol and tobacco and non-energy industrial goods rose at a faster pace. Meanwhile, the annual rate of core inflation, which excludes volatile energy and unprocessed foods prices, rose to 7.4% in February from January’s 7.1%—marking the highest print since records began.

On a monthly basis, harmonized consumer prices jumped 0.8% in February, contrasting January’s 0.2% dip.

Commenting on the outlook, Bert Colijn, senior economist at ING, stated:

“The February reading is a clear setback, but forward-looking indicators show that the declining trend in inflation is set to continue. March will show a much faster drop in headline inflation as the huge jump from last March will fall out of the year-on-year comparison. Energy inflation is set to turn negative soon, possibly already in March. But the question is how fast other price categories will see declines and if inflation proves to be stickier than expected.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest