Eurozone Inflation: A Downward Slope

Mar. 10, 2023 4:14 PM ET, , , , , , , , , , , , , , , , , , , , , , , , , , , 1 Comment
Neuberger Berman
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Summary

  • Last week saw the eurozone’s headline inflation for February decline to +8.5% YoY although core inflation (excluding food and energy) came in above expectations at +5.6% YoY.
  • Food inflation remains the key driver of headline inflation (+15% YoY), in a large part due to fresh food.
  • The weight of each item in the inflation basket is updated every year to reflect household consumption patterns the prior year.

European Central Bank To Announce Bond-Buying Program

Hannelore Foerster

By Yanick Loirat, PhD

Lower energy prices and base effects are likely to reduce eurozone inflation, though a return to the 2% target may be slow.

Last week saw the eurozone’s headline inflation for February decline to +8.5% year-over-year (YoY) although

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