Eurozone Inflation Dips Slightly in February; ECB Rate Cut Expected Amidst Economic Concerns

Eurozone inflation slowed to 2.4% in February, slightly above the anticipated 2.3%, according to Eurostat data. The core inflation rate, excluding volatile food and fuel, decreased to 2.6%. Services inflation also eased to 3.7%. The European Central Bank (ECB) is expected to cut interest rates, potentially to 2.5%, in response to the slowing inflation and weak economic growth. The Eurozone economy has been stagnant for two years, with industry in recession and households hesitant to spend due to negative economic news. The ECB may revise its 2025 growth forecast downward.