Annual inflation in the eurozone fell to 2.3%
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According to Eurostat data released on 19 March 2025, annual inflation in the euro area fell to 2.3% in February, down from 2.5% in January. This is one of the lowest readings in recent months and a possible sign that price pressures are gradually cooling. Across the European Union as a whole, inflation stood at 2.7% - also down slightly from January's 2.8%.
The lowest inflation rates were recorded in France (0.9 per cent), Ireland (1.4 per cent) and Finland (1.5 per cent). These countries demonstrate the greatest price stability. In the opposite spectrum are Hungary (5.7%), Romania (5.2%) and Estonia (5.1%) - here inflationary processes are still noticeable.
Compared to January 2025, inflation fell in 14 EU countries, remained stable in 6 and rose in 7. This confirms the multidirectional processes in the region's economy.
The main contributors to inflation in the euro area are services (+1.66 percentage points), followed by food, alcohol and tobacco (+0.52 p.p.), non-food manufactured goods (+0.14 p.p.) and energy (+0.01 p.p.). Thus, it is the services sector that remains the main driver of inflation, despite the general decline in energy prices.
In Luxembourg, annual inflation was 1.9 per cent, which is below the eurozone average and indicates a fairly stable price trend. By comparison, Germany's inflation rate is 2.6%, Italy's is 1.7% and Spain's is 2.9%.
