Eurozone inflation down in February, above expectations

ISTANBUL

The annual inflation rate in the euro area dropped to 2.6% in February, down from 2.8% in January, exceeding the market expectations of 2.5%, Eurostat announced provisional figures on Friday.

The price increase of food, alcohol and tobacco was the highest annual rate in February with 4%, followed by services with 3.9%, and non-energy industrial goods with 1.6%, Eurostat said.

Meanwhile, energy prices dropped by 3.7% year-on-year in February.

The annual inflation rate was 8.5% in February 2023.

Last month, the European Central Bank kept the policy rate constant at 4.5%, saying the downward trend in underlying inflation has continued, besides an energy-related upward base effect on headline inflation.

"Tight financing conditions are dampening demand, and this is helping to push down inflation," it added.