Global Economy
Eurozone Inflation Jumps to 1.9% in February, Surpassing Expectations
Euro area consumer prices accelerated in February 2026, with annual inflation climbing to 1.9% – up from 1.7% in January and the lowest level recorded in the past 16 months. The rise outpaced market expectations of 1.7%, driven mainly by higher price growth in services and industrial goods. Energy prices continued to fall but at a slower pace, while food, alcohol and tobacco inflation held steady. Core inflation, which strips out the most volatile items, rebounded to 2.4% after reaching a four‑year low in January. The data shows divergent trends across major economies, with France, Spain and Italy seeing sharper CPI gains than Germany.
Listen to this article
Unlock audio versions of premium articles and more with a Pro subscription.
Key figures for February 2026
Annual inflation in the Euro area reached 1.9% in February, up from 1.7% in January and the lowest level in 16 months, but still above the market forecast of 1.7%.
Sector‑by‑sector breakdown
- Services: Inflation accelerated to 3.4% from 3.2%.
- Industrial goods (excluding energy): Up to 0.7% from 0.4%.
- Energy: Prices fell by 3.2%, a slower decline than the 4.0% drop in January.
- Food, alcohol & tobacco: Remained flat at 2.6%.
- Core inflation (excluding energy, food, alcohol & tobacco): Rebounded to 2.4% after hitting a four‑year low of 2.2% in January.
Country‑specific CPI movements
Among the major Eurozone economies, the harmonised consumer price index (HICP) rose sharply in France (+1.1% vs +0.4% in Jan), Spain (+2.5% vs +2.4%), and Italy (+1.6% vs +1.0%). Germany showed a modest slowdown, with inflation easing to 2.0% from 2.1%.
The rebound in core inflation suggests that underlying price pressures are reviving, which could influence the European Central Bank’s policy outlook in the coming months.