FX.co ★ Eurozone Inflation Excluding Energy and Food Sees Positive Turn in February

The Eurozone's Harmonized Index of Consumer Prices (HICP) excluding energy and food experienced a notable shift in February 2025, demonstrating a positive turn in inflation trends. According to the latest data updated on March 3, 2025, the indicator increased to 0.5% month-over-month. This follows a contraction of -0.7% observed in January 2025, indicating a significant recovery over the short span of a month.

The increase in the HICP ex Energy and Food suggests a rebound in core inflationary pressures, hinting at potential stabilization within the Eurozone's broader economic landscape. The switch from negative to positive values could be a sign of improving economic conditions and resurging consumer demand, amidst ongoing uncertainties affecting global markets.

Economists will be closely observing this trend in the coming months to assess whether this uptick is temporary or indicative of a longer-term shift. With the previous indicator reflecting a downturn, the current rise sparked optimism, although the broader economic implications remain to be fully understood. Eurozone policymakers may see this as a signal of underlying strength in consumption, exclusive of volatile energy and food sectors. As such, these developments could play a crucial role in shaping future monetary policy decisions within the region.