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3/16/06

FXStreet.com: Euro Zone annual inflation slowdown in February

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Euro Zone annual inflation slowdown in February

FXstreet.com (Barcelona) – Euro Zone’s harmonised index of consumer prices rose slightly in February to 2.3% after a 2.4% in January, a year earlier the rate was 2.1%, European Union statistics office Eurostat confirmed on Thursday. Inflation softened due to dissipation of the effect of high energy prices. Eurostat shows that prices excluding energy, food, alcohol and tobacco (its favoured measure of core inflation) were up 1.2 pct year-on-year in February, unchanged from the January rate of increase. Energy prices grew by 0.4% month-on-month and 12.5% year-on-year in February, down from a 13.6% year-on-year increase in January. Without the energy and organic food component, prices rose 0.2% month-on-month for an unchanged 1.3% increase year-on-year.

Core inflation shows then that oil prices have not yet boosted prices in other sectors.

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