24hoursworld

core CPI hit all-time highs in February

core CPI hit all-time highs in February

The previous inflation data (January) seemed to confirm the downward path of the CPI in the euro zone. After marking a maximum of 10.6% in October, the January data generated great hope in the markets. However, this joy has been short-lived. The strong data from Spain, France and Germany already suggested that inflation was going to become entrenched, what few anticipated is that the core was going to rise three tenths of a sudden.

In the month of February, the rise in energy prices moderated to 13.7% from 18.9% in January, while the price of fresh food was 13.6%, compared to 11.3 % of last month.

Similarly, services rose 4.8% year-on-year, four tenths more than in January, and non-energy industrial goods became more expensive by 6.8%, one tenth more than in the previous month. Excluding the impact of energy from the calculation, the year-on-year inflation rate in the euro zone stood at 7.7% in February, compared with 7.3% in January.

In addition, Also excluding the effect of fresh food, alcohol and tobacco prices, the core inflation rate in the Eurozone rose to 5.6% from 5.3% in January, its highest level ever. the historical series. Philip Lane, the ECB’s chief economist, stressed this week the importance of core inflation for the ECB when formulating its policies (rate hikes and balance sheet reduction). The underlying is one of the three key criteria for deciding how far the ECB’s tightening will go.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts

France: No discrimination based on hairstyle

France: No discrimination based on hairstyle

France’s National Assembly is discussing hair today The members of the National Assembly are today debating a draft law according to which discrimination in the