Eurozone inflation edged higher in February, with headline CPI finalized at 1.9% yoy, up from January’s 1.7% yoy. Core inflation, which strips out energy, food, alcohol and tobacco, also firmed to 2.4% yoy from 2.2% yoy.
The composition of inflation highlights a clear shift toward domestically driven pressures. Services were the dominant contributor, adding 1.54 percentage points to the annual rate, followed by food, alcohol and tobacco at 0.48 pp and non-energy industrial goods at 0.17 pp. In contrast, energy continued to act as a drag, subtracting -0.30 pp.
Across the broader EU, CPI was finalized at 2.1% yoy, up from 2.0% yoy in January, though regional disparities remain wide. Inflation ranged from just 0.5% in Denmark to as high as 8.3% in Romania, while price growth rose in twelve member states and fell in eleven.
