Eurozone: Inflation rises above ECB target in February
March 2, 2017
Inflation in the Eurozone rose to the highest level since December 2012 in February, according to a flash estimate released by Eurostat on 2 March. Harmonized inflation was 2.0% in February, above January’s 1.8%. The result was in line with market expectations and brought inflation above the ECB’s target of just under 2.0%, raising questions if the Bank will alter its ultra-easy monetary policy and bond-buying program.
According to Eurostat, the main contributor to February’s rise was higher prices for energy. Core inflation remained stable at 0.9%, suggesting that underlying price pressures are still moderate. Month-on-month price variations and a more detailed set of data will be provided on 16 March.