FRANKFURT (Reuters) – Euro zone price growth was slightly weaker in February than in January but core inflation continued to pick up on higher service costs, show the final figures published on Friday by Eurostat.
The consumer price index rose by 8.5% year on year last month, a figure in line with the “flash” estimate, after +8.6% in January, the sharp drop in energy costs having almost offset by price increases in almost all other categories.
Over one month, prices increased by 0.8%, in line with the first estimate.
Excluding food and energy, the index rose by 7.4% over one year, a figure accelerating from 7.1% recorded in January.
An even narrower measure, which also excludes alcohol and tobacco, is up 5.6% after +5.3%.
The European Central Bank raised interest rates by a further 50 basis points on Thursday and its new forecast shows that core inflation will remain above the 2% target for years to come. It estimates that it will stand at 4.6% on average in 2023, then at 2.5% in 2024 and 2.2% in 2025.
(Balazs Koranyi, Laetitia Volga, edited by Kate Entringer)
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