Eurozone February preliminary CPI +2.4% vs +2.3% y/y expected

• Prior +2.5%
• Core CPI +2.6% vs +2.6% y/y expected
• Prior +2.7%

The headline reading is just a touch higher than estimated but both that and core annual inflation are down slightly compared to January at least. The euro is up on the day but if anything, the data here just supports the ECB case to cut this week. But perhaps with price pressures not easing that much, policymakers will feel inclined to move to the sidelines thereafter. After all, we’re still seeing inflation stubbornly hold in the 2% to 3% range for now.

This article was written by Justin Low at www.forexlive.com.