Inflation in France has reached its lowest level since September 2021, at 3.1%, prompting discussions about the need for interest rate cuts by the European Central Bank. Consumer prices in the eurozone's second-largest economy rose 3.1% in February compared to the same period last year, down from 3.4% in the previous month. Inflation is also slowing in Spain, from 3.5% to 2.9%. Analysts predict a slowdown in inflation in the eurozone to 2.5%. Inflation is approaching the ECB's target level of 2% against the background of lower energy prices and stagnation in the European economy. However, officials in Frankfurt warn of the possible negative consequences of monetary policy easing too quickly, fearing renewed pressure on prices. Particular attention is paid to wages when making any ECB decisions, and a clearer picture is expected by the June rate meeting. Concerns are related to the fact that a significant increase in wages could spur inflation in the service sector, which in France fell to 3.1%. Meanwhile, commodity inflation fell to 0.3% from the previous level of 0.7%. Consumer spending in January decreased by 0.3% compared to the previous month, while spending on manufactured goods fell by 1.5%. Economists had forecast a 0.2% decline.
QUICK LINKS
Contact Us 
