Eurozone inflation hits ECB target

Unemployment in the 19-country single currency area in January meanwhile was 9.6 percent, unchanged from December but holding at its lowest rate since May 2009, the Eurostat statistics service said.

Eurozone inflation hits ECB target

World Bulletin / News Desk

Eurozone inflation in February hit the European Central Bank's 2.0 percent target for the first time since 2013 as its massive economic stimulus appeared to be finally paying off, figures showed Thursday.

Analysts said the figures showed consumers have largely put aside immediate concerns over Brexit and the new US administration but while last year's economic pick-up continues, further gains might be limited.

Higher oil and food prices have stoked inflation in the last year but they seem to have peaked out for the moment, they noted.

Analysts surveyed by Factset expected 2.0 percent inflation after prices jumped 1.8 percent in January following 1.1 percent in December.

The Eurostat statistics service said the last time inflation was at 2.0 percent was in January 2013.

Jennifer McKeown at Capital Economics said she expected the increase to 2.0 percent to "prove temporary ... (as) underlying price pressures remain subdued."

There was no sign either of increased wage pressures, meaning the ECB "is likely to reiterate its view that the latest pick-up in inflation will be transitory," she said.

ECB chief Mario Draghi said last month he saw no need to change course and the economy still required the central bank's support.

"We should not react to individual data points and short-lived increases in inflation," Draghi said.

Güncelleme Tarihi: 02 Mart 2017, 15:31