Euro zone inflation accelerates to 1.9% as energy risks cloud outlook

Euro zone inflation accelerated to 1.9% year-on-year in February 2026, up from 1.7% in January, according to preliminary estimates, exceeding market expectations. The increase was driven by firmer services inflation, which rose to 3.4%, and a pickup in non-energy industrial goods to 0.7%. Energy prices remained in negative territory at -3.2%, though the pace of decline eased from January’s -4.0%. Food, alcohol and tobacco inflation held steady at 2.5%.

Among major economies, inflation climbed faster in France, Spain and Italy, while Germany recorded a slight moderation.

Euro zone inflation

On a monthly basis, consumer prices rebounded 0.7%, the strongest rise since March 2024. Core inflation also edged higher to 2.4%, indicating underlying price pressures.

Rising oil prices linked to tensions in the Middle East could add further upside risks, potentially complicating the European Central Bank’s policy outlook despite projections that medium-term inflation will remain below target.

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