News & Feeds February 26, 2023

Euro-Area’s Core Inflation Problem to Come to the Fore

Fresh data from the euro zone are set to highlight why European Central Bank officials are hanging onto their hawkish tone, even as the region’s worst-ever spike in prices recedes. Economists polled by Bloomberg reckon headline inflation eased for a fourth month in February after warm winter weather sent natural gas prices tumbling. But the core gauge that strips out such volatile items will probably hold at a record 5.3%, its stickiness resembling the worrying picture in the US. The reading, scheduled for Thursday, will remain significantly above the ECB’s 2% target. Alongside national data from the bloc’s top