Two parents and their two children walk through a section of sweet cakes, biscuits and jam.
Nicolas Guyonnet | Afp | Getty Images
Euro zone inflation eased to 2.4% in February but came in slightly above analyst expectations, according to flash data from statistics agency Eurostat out on Monday.
Economists surveyed by Reuters had expected inflation to dip to 2.3% in February, down from the 2.5% reading of January.
So-called core inflation, which strips out energy, food, alcohol and tobacco costs, hit 2.6% in February, just below the 2.7% print of the previous month.
The closely watched services inflation reading, which has proven sticky over recent months, also eased, coming in at 3.7% last month, compared to the January reading of 3.9%.
The Monday figures also pointed to a sharp slowdown in energy price hikes, which were up just 0.2% in February, versus 1.9% in the first month of the year.
Euro zone inflation re-accelerated in the fourth quarter, but European Central Bank policymakers remain optimistic about its trajectory. Accounts from the central bank’s January meeting last week showed that policymakers believed inflation was on its way to meeting the 2% target, despite some lingering concerns.
The ECB meets again later this week and is widely expected to announce another interest cut, which would mark its sixth reduction since it started easing monetary policy back in June.
Markets will also pay close attention to the ECB statement accompanying the rate decision, searching for clues on policymakers’ assessment of inflation and monetary policy restrictions.
The Monday data comes after several major economies within the euro zone reported inflation data last week. Provisional data showed that February inflation was unchanged at a higher-than-expected 2.8% in Germany, but eased sharply to 0.9% in France. The readings are harmonized across the euro zone to ensure comparability.
This breaking news story is being updated.