Euro Area Inflation Declines to 2.3% in February

Inflation in the Eurozone fell to 2.3% in February 2025, slightly below an initial estimate of 2.4%, primarily due to a revision in Germany, which alleviates concerns about strong price pressures affecting future interest rate cuts by the European Central Bank (ECB). Core inflation, excluding food and energy prices, remained steady at 2.6%, while consumer prices increased by 0.4% month-on-month. The ECB is facing uncertainty regarding its monetary policy, with markets predicting a 50% to 60% chance of a rate cut in April and further reductions anticipated throughout the year. In Greece, inflation decreased marginally to 3% in February from 3.1% in January. Despite the decline in Eurozone inflation, it still exceeds the ECB's target of 2%. The ECB expects inflation to stabilize around current levels before potentially reaching its target in early 2026.