According to the latest data released by Eurostat, the European Union’s statistical office, the eurozone’s consumer prices (CPI) rose by 8.5% in February on a year-on-year basis. This was a slight slowdown compared to the 8.6% increase recorded in January, but higher than the 8.2% predicted by analysts.
The increase in CPI was driven by a rebound in food prices, while energy prices declined. However, the core CPI, which excludes food and energy, rose by 5.6% in February, up from 5.3% in January. This was above the inflation target of 2% set by the European Central Bank (ECB).
The rise in CPI could lead to concerns about inflationary pressures in the eurozone, which could impact the region’s economic recovery from the COVID-19 pandemic. The ECB has recently indicated that it will closely monitor inflation and will take appropriate action if necessary.
The eurozone has been experiencing a surge in inflation due to factors such as supply chain disruptions, rising commodity prices, and higher demand as the region recovers from the pandemic. The ECB has already taken several measures to support the economy, including keeping interest rates at historically low levels and implementing a bond-buying program.