Eurozone inflation slows to 2.4% in February

Eurozone inflation slowed in February, but was higher than analysts had expected.

Eurozone consumer prices rose 2.4% in February, data from Eurostat showed Monday, higher than analysts’ expectations of 2.3% and below January’s 2.5%.

Core inflation, which excludes food, tobacco and alcohol, was 2.6% last month, down from 2.7% in January. (CNBC)

Service inflation also slowed, coming in at 3.7% in February, down from 3.9% in January.

Eurozone inflation had started to accelerate in the last quarter of last year, but policymakers at the European Central Bank remain optimistic about its trajectory.

Policymakers still believe inflation is on track to meet the 2% target, despite some lingering concerns. The European Central Bank is scheduled to hold its monetary policy meeting this week, amid expectations of implementing an additional interest rate cut, which would be the sixth interest rate cut since the start of its monetary easing cycle in June.