In February 2025, the annual inflation rate in the euro area dropped to 2.3%, down from 2.5% in January and 2.6% a year earlier.
Inflation in the European Union (EU) also declined to 2.7%, compared to 2.8% in January, and remained below the 2.8% recorded in February 2024. These figures were reported by Eurostat, the statistical office of the European Union.
Among EU Member States, France (0.9%), Ireland (1.4%), and Finland (1.5%) recorded the lowest annual inflation rates, while Hungary (5.7%), Romania (5.2%), and Estonia (5.1%) reported the highest. Compared to January 2025, inflation declined in 14 EU countries, remained unchanged in six, and increased in seven.
In February 2025, the largest contributor to annual inflation in the euro area was services, adding 1.66 percentage points to the overall rate. Food, alcohol, and tobacco contributed 0.52 percentage points, while non-energy industrial goods and energy accounted for 0.14 percentage points and 0.01 percentage points, respectively.
Source: Eurostat
The US dollar strengthened on Friday after President Trump announced a 35% tariff on Canadian imports and signaled potential EU tariffs, increasing safe-haven demand.
The dollar weakened on Thursday after Fed minutes revealed policymakers see rate cuts as likely later this year, pushing Treasury yields lower and lifting the euro and pound.
Detail Commodities Slip as Markets Brace for FOMC Minutes (07.09.2025)EUR/USD slipped toward 1.1700 ahead of the FOMC minutes, while the Japanese yen weakened past 147 for a third session as tensions over US-Japan trade talks deepened.
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