Eurozone annual inflation rate is down to 1.2% for February, compared to1.3% for January, according to Eurostat report.
Eurozone inflation in February met the analysts’ forecasts, however, it disrupted the plans of the ECB that aims at speeding it up. Moreover, the ECB’s objectives are set back by the core inflation, remaining stable at 1% Y-o-Y. All that only proves the policy of gradual ceasing quantitative easing program, chosen by the regulator, to be relevant. According to the ECB expectations, it will return inflation to the needed level of below but close to 2% before 2020.
At the same, the expected consumer inflation results for February include energy prices rate to be the highest (2.1% against 2.2% for January). Next come services (1.3% against 1.2% for January), food, alcohol and cigarettes (1.3% against 1.2 for January), and the prices for non-energy industrial goods (0.7% against 0.6% for January)
Eurozone inflation has remained below the target since early 2013.