Euro zone inflation softens to 8.5% in February as ECB signals interest rate hiking is not over

Inflation successful the euro portion eased somewhat successful the period of February, pursuing comments from the European Central Bank main that bringing the complaint down volition instrumentality immoderate time.

Headline ostentation crossed the 20-member bloc came successful astatine 8.5% successful February, according to preliminary information released Thursday. This indicates that prices are not coming down astatine the gait that had been registered successful caller months. Headline ostentation stood arsenic precocious arsenic 10.6% successful October, but reached a revised 8.6% in January.

Analysts polled by the Wall Street Journal were expecting a little February ostentation complaint of 8.2%.

Food prices accrued month-on-month, offsetting declines successful vigor costs.

Core ostentation picked up to an estimated 5.6% successful February, from 5.3% successful January.

In caller days, marketplace players person been wondering whether the ECB volition person to support its hawkish stance for longer, pursuing hotter-than-expected February ostentation figures from France, Germany and Spain.

ECB President Christine Lagarde said Thursday that bringing down ostentation volition inactive instrumentality time, according to comments reported by Reuters. The slope targets a header complaint of 2%.

The Frankfurt-based instauration has indicated that different 50 ground constituent hike is connected the cards for erstwhile the cardinal slope adjourns aboriginal this month. In comments reported by Reuters, Lagarde said Thursday that this determination is inactive connected that table, arsenic ostentation remains good supra target.

Analysts astatine Goldman Sachs said earlier this week that they were raising complaint hike expectations for the ECB and pricing successful different 50 ground points hike successful May.

European enslaved yields person been moving astatine multi-year highs successful caller days, amid considerations that the hawkish monetary argumentation is present to stay.