Today: 3 July 2025
3 March 2023
1 min read

Eurozone inflation softens in February

The Baltic countries are projected to record the highest annual inflation rates last month, with 20.1 per cent for Latvia, 17.8 per cent for Estonia and 17.2 per cent for Lithuania…reports Asian Lite News

The eurozone’s annual inflation rate is projected to fall to 8.5 per cent in February from 8.6 per cent in January, the European Union’s (EU) statistical office said in a preliminary estimate. According to Eurostat, energy price rises slowed to 13.7 per cent last month from 18.9 per cent in January.

Food, tobacco and alcohol prices rose by 15 per cent year-on-year for February, compared to 14.1 per cent the previous month. Non-energy industrial goods and services prices were also increasing.

The annual inflation rate for non-energy industrial goods is projected to reach 6.8 per cent in February, compared to 6.7 per cent in January. The respective figures for services are 4.8 per cent in February and 4.4 per cent in January.

The cost of energy has been the main driver of inflation in the eurozone since the outbreak of the Covid-19 pandemic and the war in Ukraine. Energy prices peaked in October 2022 at a record 41.5 per cent. In February this year, the year-on-year increase is projected to be 13.7 per cent.

The Baltic countries are projected to record the highest annual inflation rates last month, with 20.1 per cent for Latvia, 17.8 per cent for Estonia and 17.2 per cent for Lithuania.

Countries with the lowest year-on-year inflation in February include Belgium with 5.5 per cent, Spain with 6.1 per cent and Greece with 6.5 per cent.

“The February reading is a clear setback,” commented Bert Colijn, senior economist for the eurozone at ING. “Forward-looking indicators show that the declining trend in inflation is set to continue… Energy inflation is set to turn negative soon, possibly already in March. But the question is how fast other price categories will see declines and if inflation proves to be stickier than expected,” he said.

Food prices should continue to rise, but over the course of the year the increase should slow down, according to Colijn.

ALSO READ-Shehbaz warns of inflation post-IMF deal

Previous Story

UAE calls for stronger multilateral action

Next Story

Biden, Scholz to hold talks on Ukraine

Latest from -Top News

US Presses Hamas on Ceasefire Deal

The new proposal seeks to address some of Hamas’ concerns, and Israeli hostages will be released in exchange for Palestinian prisoners during the ceasefire….reports Asian Lite News US President Donald Trump has

Trump Ends Syria Sanctions

Syria has been designated a State Sponsor of Terrorism by the United States since December 1979…reports Asian Lite News US President Donald Trump signed an executive order terminating Syria sanctions, according to

India’s Growth Defies West Asia Tensions

The deepening crisis in West Asia, particularly between Israel and Iran, has had little to no visible impact on India’s economic trajectory or its export performance….reports Asian Lite News The limited trade
Go toTop

Don't Miss

Tackling Inflation

The government has been taking various steps to control food

Inflation Undermines Imran Grip on Power

But ,Khan had blamed the opposition for past mistakes and