MNI DATA ANALYSIS: EMU Feb Headline Infla Revised Down To 1.1%

--Final Eurostat Data Sees EMU February HICP At 1.1% Y/Y

--Core Inflation Confirmed At 1.0% Y/Y Unchanged vs January

By Jamie Satchithanantham

     LONDON (MNI) - Euro area headline inflation between January and February

fell by a larger margin than previously estimated, to the joint-lowest level

since November 2016.

     The February headline reading of 1.1% on the year, last lower 15 months

ago, was down 0.1pp on the previous flash estimate. On the month, headline

prices rose 0.2% in February.

     This time a year ago, headline inflation stood at 2%, a touch above the

ECB's target 'close to but below 2%' level, but it has trended south ever since.

     --NON-CORE COMPONENTS EASE

     Category data show that this month's fall was driven by softer prices of

the more volatile components. 

     Food, alcohol and tobacco prices grew by 1.0% y/y in February, down from

1.9% y/y in January, accounting for 0.21pp of the 1.1% overall rise in prices -

it was still one of the bigger contributors to overall inflation, second only to

services (0.57pp). 

     Energy prices were also moderately softer on the month, with the annual

inflation rate easing 0.1pp to 2.1 y/y versus January.

     --CORE INFLATION UNCHANGED

     Excluding energy, alcohol, tobacco and food, inflation was confirmed at

1.0% on the year in February, unchanged from the level seen in January.       

     The flash euro area inflation data for March is set for release on April 4.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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