Baptiste Morin 2:13 p.m., March 03, 2023
Inflation continues in the euro zone and stagnated at 8.5% in February over one year, according to Eurostat figures.
The decline observed at the end of 2022 slowed sharply, with only 0.1 point less between January and February 2023. Europe 1 explains why inflation is unable to fall.
Towards a red month of March?
Inflation does not seem to be easing, as evidenced by a figure released by Eurostat: prices rose by 8.5% in February over one year in the euro zone, against 8.6% over one year in January.
The decline observed at the end of last year is therefore slowing down sharply, and that is cause for concern.
Stagnant inflation
Inflation fell at the end of last year, in particular because energy prices fell.
So there was a logic and it had something reassuring.
Except that at the start of 2023, energy prices are still falling, but inflation is stagnating at 8.5%, just 0.1 point less than in January.
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Because inflation is spreading in food, but not only, as explained by Hervé Le Bihan, deputy director of economic conditions and macroeconomic forecasts at the Banque de France.
"Inflation has a broader base since we observe a transmission of costs, typically energy costs and raw material costs which have increased significantly through companies' production costs and, ultimately, wages
.
"
The Banque de France and the European Central Bank observe inflation excluding food and energy.
And this inflation increases over a year, between January and February.
That undermines hopes of a near-high price drop.