Eurozone inflation continues to slow down in February, reaching a 14-month low on a monthly basis. The consumer prices rose by 1.1% in the second month of the year, up from 1.3% in the previous month, according to Eurostat’s latest data.
Compared to the same period last year, there is also a serious slowdown, with inflation in the region reaching 2.0%. However, baseline inflation, which excludes changes in volatile commodity prices such as energy and food and is considered a more accurate indicator, remains unchanged at 1.0%.
The inflation in the European Union (EU) also slowed down in February, down by 0.3% compared to the previous month – to 1.3%. This is also the lowest level since December 2016. Compared to the same period in 2017, the slowdown was much sharper, as then the inflation was 2.0%.
For February, only one EU country has deflation – Cyprus (-0.4%). The lowest inflation rate in the second month of the year was reported in Greece (0.4%), Denmark and Italy (0.5%). The fastest growth was reported in Romania (3.8%), Estonia and Lithuania (3.2%).
Compared to January 2018, the annual inflation decelerated in 18 member states, remained unchanged in two, and accelerated to seven.
The highest inflationary impact in the Eurozone was recorded in services prices (0.57 percentage points), followed by food, alcohol and tobacco (0.21 percentage points) and non-energy industrial goods (0.14 percentage points).