Inflation in the eurozone accelerated to 1.9% y/y in February

Energy prices continue to decline, while services have once again become the main driver of price growth

Annual inflation in the eurozone rose to 1.9% in February 2026, up from 1.7% in January, according to a preliminary estimate by Eurostat. Thus, the indicator has slightly deviated from the ECB’s target of 2%, but remains below the levels of the second half of 2025.

The highest price growth rates are traditionally seen in the services sector – 3.4% y/y compared to 3.2% in January. Food, alcohol, and tobacco maintained their pace at 2.6%. At the same time, inflation for non-energy industrial goods accelerated to 0.7% from 0.4% a month earlier.

The energy component remains a restraining factor for the overall index: energy prices fell by 3.2% year-on-year, although the decline was less pronounced than in January (-4.0%). This indicates a gradual fading of the deflationary effect of the energy market.

Among the largest economies in the region, inflation in Germany was 2.0% y/y, in France – 1.1%, in Italy – 1.6%, and in Spain – 2.5%.

Further inflation dynamics will depend on energy prices and the stability of demand for services, which remain key inflation drivers.

It should be recalled that at the end of 2025, the European Union’s GDP grew by 1.6% year-on-year, while the eurozone economy added 1.5%. In the fourth quarter of 2025, GDP increased by 1.4% y/y in the EU and by 1.3% y/y in the eurozone. In quarterly terms, seasonally adjusted GDP grew by 0.3% q/q in both the European Union and the eurozone.