Euro zone inflation eased to 2.4% in February, slightly above analyst expectations, according to flash data released by Eurostat. Economists surveyed by Reuters had anticipated a drop to 2.3%, down from January’s 2.5%. Core inflation, excluding energy, food, alcohol, and tobacco, reached 2.6% in February, marginally below the previous month’s 2.7%. The services inflation, a key focus due to its persistence, decreased to 3.7% from January’s 3.9%. Energy price hikes showed a significant slowdown, rising only 0.2% in February compared to 1.9% in January. Despite a re-acceleration of inflation in the fourth quarter, European Central Bank (ECB) policymakers remain optimistic about achieving the 2% inflation target. The ECB is expected to announce another interest rate cut this week, marking the sixth reduction since June. Markets will scrutinize the accompanying ECB statement for insights into policymakers’ views on inflation and monetary policy. This data follows reports from major euro zone economies, with Germany’s inflation holding steady at 2.8% and France’s easing to 0.9%. — news from CNBC
