BRUSSELS: Eurozone inflation unexpectedly quickened, backing the European Central Bank’s (ECB) caution on interest rates, particularly as the war in Iran sends energy prices surging. Consumer prices rose 1.9% from a year ago in February – up from 1.7% in January and just below the ECB’s 2% target. Core inflation, excluding volatile food and energy costs, also surprised economists by accelerating to 2.4%. “Eurozone inflation was probably driven higher in February by the Olympic Games in Milan, offering little insight into underlying price pressures,” Bloomberg Economics’ David Powell, a senior eurozone economist, said. “We don’t know much so I would certainly not rush to react to any movements to energy prices,” Wunsch said.

Source: The Star March 05, 2026 10:04 UTC