MNI BRIEF: Eurozone Inflation Slows To 2.6% In February
Eurozone inflation slows again in February, but pace of disinflation slows.
Eurozone headline inflation slowed to 2.6% in February, moving closer to the European Central Bank's 2% target, Eurostat said on Friday.
Core inflation also slowed, though a lesser pace than expected by analysts, coming in at 3.1% y/y against 3.3% last month.
The ECB next week will next week publish updated economic projections, which are expected to show inflation running slower in the years ahead compared to December's forecasts. However, the current pace of disinflation may help policymakers argue for a later start to a rate cutting cycle, again backing current market pricing for a first cut in June. (See MNI SOURCES: ECB Cut Expectations Range From 50-100BP In 2024)