The European Statistics Office (Eurostat) has released the Eurozone’s annual inflation leading data for February. Accordingly, annual inflation in the Eurozone, which was 5.1% in January, rose to 5.8% last month. Thus, inflation in the euro area in February reached the highest level measured in the last 25 years for which data were collected by Eurostat.
The highest annual inflation in the main components of inflation was in energy with 31.7%. Energy was followed by food, alcohol and tobacco products with 4.1%, non-energy industrial products with 3% and services with 2.5%.
The rise in the price of Brent oil to 110 dollars per barrel with the start of the Ukraine War, and the increase in the price of natural gas 10 times per megawatt-hour in the last year, tells us that the rise in inflation in the Euro Zone has not stopped. However, a slowdown in the economy awaits the European economy, which will be more severely affected by the war. For this reason, it is getting harder for the European Central Bank, which has a target of 2%, to implement monetary tightening in the last quarter of 2022, as it was before the Ukraine War.
In February, inflation was 5.5% in Germany, 4.1% in France, 7.5% in Spain, 6.2% in Italy, 7.2% in the Netherlands, 9% in Belgium, 6, measured 12.4% in Estonia and 13.9% in Lithuania.