The next meeting of the Governing Council of the ECB is scheduled for March 10th.
(Photo: dpa)
Dusseldorf The inflation rate in the euro area continued to increase in February. Prices rose by 5.8 percent compared to the same quarter last year, as the European statistical office Eurostat announced after an initial estimate.
Economists had expected a value of 5.3 percent. However, data from individual EU countries such as Germany published at the beginning of the week had already indicated a higher value. In January, the price increase was 5.1 percent.
The main driver of inflation was once again the increase in energy prices, which rose by 31.7 percent in February. Food, alcohol and tobacco prices rose by 4.1 percent and services by 2.5 percent. Core inflation, which excludes energy, was 3.0 percent, down from 2.5 percent in January.
In the wake of the Ukraine war, energy prices are likely to increase further. Brent oil was trading at more than $110 a barrel Wednesday morning, the highest since the summer of 2014. Experts see the very high energy prices as a threat to the global economy.
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This also has a direct impact on the monetary policy of the European Central Bank (ECB). In view of the high inflation in the euro area, the central bank recently gave a clear signal that it intends to tighten monetary policy. Interest rate hikes in the current year can no longer be ruled out either.
The next ECB Council meeting is scheduled for next week. The central bank could also address the still unclear consequences of the Ukraine war. To date, many experts have assumed that a quicker end to the net purchases of bonds would be decided there.
More: Inflation in Germany rises to 5.1 percent – which now speaks for a sustained price surge