LONDON — Inflation in the 19-country eurozone fell in February for a third month running even though economic growth is at a decade high, a trend that’s likely to make the European Central Bank tread carefully in the months ahead as it mulls how to end its crisis-era measures.
The EU statistics agency, Eurostat, said Wednesday that annual consumer price inflation eased to 1.2 percent in the year to February from 1.3 percent the month before. The fall, which takes inflation to its lowest level since December 2016, was anticipated by investors and was largely due to energy prices rising at a slower tick on an annual basis.
But even when stripping out volatile items such as energy and food, inflation held steady at a still-low 1 percent.
Both measures are below the European Central Bank’s goal of achieving inflation of just below 2 percent and will likely reinforce expectations that the bank won’t announce any dramatic changes to its cheap and easy monetary policy at its meeting next week.
The recent moderation in inflation is likely to disappoint many at the bank looking to bring an end to the crisis-era stimulus measures put in place over the past few years to help the eurozone economy back to health. (AP)