Inflation declines in Europe due to falling energy prices

Inflation in Europe fell again to 2.6% in February as high interest rates, moderate oil and gas prices, and slow economic growth kept prices in stores from rising.

This was reported by AP with reference to the EU statistical agency Eurostat.

Food inflation dropped to 4% from 5.6%, which brought some relief to people with modest incomes who spend more of their salaries on basic necessities than wealthy people. Another factor was a 3.7% decline in energy prices.

Inflation is now well below its peak of 10.6% in October 2022, which it reached after Russia cut off most of its natural gas supplies and significantly raised energy prices.

February's figure for the 20 countries using the euro currency is comparable to January's 2.8%.

Author - Olena Madiak, 01/03/2024