Eurozone February Inflation Rate Confirmed at 1.9%

The Eurozone’s annual inflation rate was confirmed at 1.9% in February 2026, up from January’s 16-month low of 1.7%, driven by a notable acceleration in services inflation, which climbed to 3.4% from 3.2%, and a pickup in non-energy industrial goods inflation, rising to 0.7% from 0.4%. Meanwhile, food, alcohol, and tobacco inflation edged down slightly to 2.5% from 2.6%, while energy prices continued to decline, though at a slower pace, falling 3.1% compared to January’s 4.0% drop. Core inflation, which excludes volatile energy, food, alcohol, and tobacco prices, increased to 2.4%, rebounding from January’s more than four-year low of 2.2%. Among the bloc’s largest economies, the Harmonised Index of Consumer Prices accelerated in France (1.1% vs. 0.4%), Spain (2.5% vs. 2.4%) and Italy (1.5% vs. 1.0%), while easing slightly in Germany (2.0% vs. 2.1%).

Annual inflation in the Euro Area rose to 1.9% in February 2026, up from January’s 16-month low of 1.7% and above market expectations of 1.7%, according to a preliminary estimate. Price pressures strengthened notably in services, where inflation accelerated to 3.4% from 3.2%, while non-energy industrial goods inflation picked up to 0.7% from 0.4%. Energy prices continued to decline, but at a slower pace, falling 3.2% compared with a 4.0% drop in January. Food, alcohol and tobacco inflation held steady at 2.6%. Core inflation, which excludes energy, food, alcohol and tobacco, rose to 2.4%, rebounding from January’s more than four-year low of 2.2%. Among the bloc’s largest economies, the Harmonised Index of Consumer Prices (HICP) accelerated in France (1.1% vs. 0.4%), Spain (2.5% vs. 2.4%) and Italy (1.6% vs. 1.0%), while easing slightly in Germany (2.0% vs. 2.1%).

Annual inflation in the Euro Area was confirmed at 1.7% in January 2026, down from 2.0% in December and marking its lowest level since September 2024. The moderation coincided with a strong appreciation of the euro, which climbed above $1.20 at the end of the month, its highest level in more than four years. Price growth slowed for both services (3.2% vs 3.4% in December) and processed food, alcohol & tobacco (2.0% vs 2.1%), while energy prices fell further, dropping 4.0% compared with a 1.9% decline in December. By contrast, inflation picked up for unprocessed food (4.2% vs. 3.5%) and non-energy industrial goods (0.4% vs. 0.3%). Core inflation, which excludes energy, food, alcohol, and tobacco, fell to 2.2%, its lowest level since October 2021. Among the largest eurozone economies, harmonized inflation slowed in France (0.4% vs. 0.7%), Spain (2.4% vs. 3.0%), and Italy (1.0% vs. 1.2%), while it edged higher in Germany (2.1% vs. 2.0%).