Annual inflation in the euro area is estimated at 5.8%, a record high, and an increase from 5.1% in January. DAX is up +0.28%, EURUSD is down -0.27%.
- The above-estimate inflation rate occurs amid concerns that the ongoing crisis in Eastern Europe could cause further rises in energy costs.
- The energy component posted the strongest inflation, with an annual rate of 31.7% in February, more than 28.8% posted in the previous month.
- Food, alcohol, and tobacco posted annual inflation of 4.1%, more than 3.5% in January. Non-energy industrial goods rose to 3.0% from 2.1%, while services saw inflation of 2.5%, from 2.3% in January.
- A core measure of inflation that excludes the volatile components rose to 2.7% in February.
- The high inflation happens even as Germany warned that inflation might average 5% this year, while Deutsche Bank says rising oil and gas prices could lead to a vicious inflationary spiral.