- Prior +2.1%
- HICP +2.0% vs +2.0% y/y prelim
- Prior +2.1%
The drop in the headline reading owes much to lower energy prices mostly. So when you take a look at core annual inflation instead, that is seen at 2.5% – the same as in January. As such, this is still one stubborn area that is stifling the ECB from pursuing further rate cuts.
And when you add in the fact that price pressures are bound to go up amid the US-Iran conflict, suddenly rate cuts look to be off the table for good.
Services inflation remains the main sticking point in Germany, with it being at 3.2% in February. Goods prices were less prevalent, only seen up 0.8% compared to the same month last year. The more comprehensive breakdown of the report:
