Eurozone CPI accelerated from 1.7% year-on-year in January to 1.9% in February, exceeding expectations of 1.7%. Core CPI, which excludes energy, food, alcohol and tobacco, also firmed from 2.2% to 2.4%, above expectation of 2.2%, pointing to renewed underlying price pressures.
The composition of the increase suggests services remain primary driver. Services inflation rose to 3.4% from 3.2%, maintaining its position as the most persistent component.
Food, alcohol and tobacco held steady at 2.6%, while non-energy industrial goods picked up to 0.7% from 0.4%. Energy prices remained negative at -3.2%, though the drag eased compared to -4.0% in January.
