Eurozone inflation eases to 2.3% in February

Eurozone inflation decreased to 2.3% in February, the lowest since January 2022. Core inflation, which excludes food and energy, fell to 2.6%, down from 2.7% in January. France reported the lowest inflation rate at 0.9%, while Hungary had the highest at 5.7%. Revisions to inflation data indicate that price pressures are easing. Previously, inflation was estimated at 2.4% for February. Belgium saw the biggest monthly increase at 2.4%, while Portugal had a slight price decline of 0.1%. Investor sentiment remains cautious about future inflation. A recent survey shows that only 7% of European investors expect inflation to decrease in the next year. Many believe the new Trump administration could negatively affect global growth but positively impact inflation. The euro fell 0.4% against the dollar ahead of a significant Federal Reserve meeting. Analysts expect the Fed to maintain its interest rate range of 4.25% to 4.5% and provide updated economic projections. In European markets, yields on government bonds decreased slightly. Stocks were up, with the Euro STOXX 50 gaining 0.3%. This positive trend was supported by news of potential progress on a ceasefire in Ukraine. Oil prices remained stable, and Italy's FTSE Mib and France's CAC 40 saw notable gains, driven by banking stocks. Shares of Banca Monte dei Paschi di Siena rose over 3% after a favorable rating change from Deutsche Bank.