By the end of February 2023, the inflation rate in the euro area is expected to fall for the fourth month in a row. The peak of the rise in consumer prices has passed, informs The Bloomberg agency cites a survey of its own economists.
There is no official data on the level of February inflation in the Eurozone yet. However, core inflation in the region (a long-term trend in price levels) remains at a record 5.3%.
Core inflation in the eurozone is poised to ease for the fourth consecutive month in February, after warm winter weather lowered natural gas prices.
Inflation data, which will be announced on Thursday, March 2, is expected to remain well above the 2% target of the European Central Bank (ECB) administration. In this context, economists believe that the ECB will continue its monetary tightening policy.
“Another energy-driven possible drop in eurozone core inflation may do little to comfort the hawks in the ECB. With underlying price pressure still mounting, policymakers may have to continue raising key interest rates until early summer 2023.
February 21 Bloomberg cites the results of a study by S&P Global analysts reportedthat at the end of the winter period, the level of business activity in the eurozone increased at the fastest rate in the last nine months. While the biggest contribution to the dynamics came from the service sector, the industrial sector also contributed to the growth of the indicator.