Eurozone inflation cools to 2.4% in February

By Gokhan Ergocun

ISTANBUL (AA) - The annual inflation rate in the euro area dropped to 2.4% in February, according to Eurostat estimates published on Monday.

The February figure was down slightly from January’s reading of 2.5%.

The service sector, which includes recreation, transport, housing, and communication, saw the biggest price increases at 3.7%, though that was down from 3.9% in January.

Food, alcohol and tobacco items saw price increases pick up, coming in at 2.7% in February compared to 2.3% in January.

Energy prices remained nearly unchanged from a year earlier, with inflation in February standing at 0.2%, down from 1.9% in January.

Prices of non-energy industrial goods were also relatively stable on an annual basis.

France recorded the lowest inflation rate at 0.9%, while Estonia saw the highest at 5%.

While the EU struggled with inflation after the COVID-19 pandemic and the war in Ukraine, inflation is now approaching the European Central Bank’s 2% target.

February’s figures have heightened expectations that the bank will cut interest rates this week.