Euro zone inflation eased to 2.4% in February according to statistic agency Eurostat. This was lower than January's 2.5% reading, but higher than expected by economists polled by Reuters. So-called core inflation,

Inflation in Europe eased to 2.4% in February, supporting the case for another interest rate cut from the European Central Bank but leaving open how far the central bank will go in lowering borrowing costs.

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Eurozone inflation eased to 2.4% in February but remained above forecasts, complicating the ECB’s rate-cut plans. Monthly price pressures, meanwhile, hit a 10-month high. View on euronews

Euro area annual inflation is expected to be 2.4% in February 2025, down from 2.5% in January according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation,

It is widely expected that the ECB will again reduce borrowing costs when it meets next as inflation remains under control and the Eurozone economy slows. Wage growth has also cooled in recent months, further supporting the case for more rate cuts.

Consumer prices in the eurozone were 2.4% higher in February than a year earlier, a slower rate of inflation than recorded in January, reassuring policymakers ahead of Thursday’s meeting.

Euro zone inflation dipped a bit less than expected last month but its most closely watched component also dropped, sealing the case for another ECB interest rate cut on Thursday and solidifying bets for further policy easing in the coming months.