In February, inflation in the eurozone showed a decrease, indicating a shift towards the European Central Bank's target of 2%. Year-over-year headline inflation dropped to 2.3% from 2.5% in January, below the previous estimate of 2.4%. Core inflation, excluding energy and food, also decreased to 2.6% from 2.7% in January, marking its lowest point since January 2022.

Among the EU countries, France had the lowest annual inflation rate at 0.9%, with Hungary, Romania, and Estonia having the highest rates. Belgium experienced the highest monthly inflation increase at 2.4%, while Portugal saw a price decline. Services were the biggest contributors to euro area inflation in February, followed by food, alcohol & tobacco, non-energy industrial goods, and energy.

Despite the lowering inflation, investors remain cautious about future price trends. A survey showed that a small percentage of European investors expect lower inflation in the coming year. Market reactions indicate concern over the impact of the Trump administration on global growth and inflation. Additionally, Germany's fiscal stimulus and increased European defense spending are seen as potential growth drivers. Euro dropped against the dollar amid expectations from the US Federal Reserve's meeting, where interest rates are expected to remain unchanged. The Fed might adjust its inflation forecasts to accommodate any tariff-related price pressures under the new administration.