Annual inflation in the Euro Area rose to 1.9% in February 2026, up from January’s 16-month low of 1.7% and above market expectations of 1.7%, according to a preliminary estimate. Price pressures strengthened notably in services, where inflation accelerated to 3.4% from 3.2%, while non-energy industrial goods inflation picked up to 0.7% from 0.4%. Energy prices continued to decline, but at a slower pace, falling 3.2% compared with a 4.0% drop in January. Food, alcohol and tobacco inflation held steady at 2.6%. Core inflation, which excludes energy, food, alcohol and tobacco, rose to 2.4%, rebounding from January’s more than four-year low of 2.2%. Among the bloc’s largest economies, the Harmonised Index of Consumer Prices (HICP) accelerated in France (1.1% vs. 0.4%), Spain (2.5% vs. 2.4%) and Italy (1.6% vs. 1.0%), while easing slightly in Germany (2.0% vs. 2.1%).