Inflation in the euro area slowed to 2.6% in February year-on-year, down from 2.8% the month before but not quite as low as the 2.5% analysts had predicted.
Eurostat's preliminary estimate, released on Friday, shows that the consumer prices in the eurozone are rising at their slowest rate in three months, but they're still hovering above the European Central Bank's (ECB) target inflation rate of 2%.
Specifically, services price rises eased off slightly from 4% to 3.9%, as did food, alcohol and tobacco price rises (falling from 5.6% to 4%) and non-energy industrial goods (2% to 1.6%).
On the other hand, falling energy prices decelerated from -6.1% in January to -3.7% in February.
Core inflation, excluding volatile food and energy prices, also put on the brakes to arrive at 3.1%, reaching its lowest point since March 2022 yet still remaining above forecasts of 2.9%.
The figures follow hot on the heels of those from the eurozone's largest economies.
In France, preliminary figures indicated a dip in the annual inflation rate based on the CPI (consumer price index) from 3.1% in January to 2.9% in February. However, economists had forecasted a steeper decline to 2.7% annually.
Meanwhile, in Spain, flash data revealed a drop in the annual CPI inflation rate from 3.4% in January to 2.8% in February, slightly missing economists' expectations of a 2.7% annual decline. On a monthly basis, the CPI edged up by 0.3% in February, matching market expectations.
In Germany, inflation stood at 2.7% from a year ago, down from 3.1% in January and in line with expectations, while Italy stood firm at 0.9%.
The results will come as a relief to ECB officials, who will gather next week to set their next interest rate as they continue their strategy to drive down inflation. Experts predict the deposit rate will again be left at 4%.
