Breaking: Eurozone Preliminary HICP inflation eases to 8.5% YoY in February vs. 8.2% expected

The annualized Eurozone Harmonised Index of Consumer Prices (HICP) comes in a tad softer at 8.5% in February vs. January’s 8.6%, the latest data published by Eurostat showed on Thursday. The market expected the inflation gauge to ease to 8.2% in the reported period.

The core HICP climbs to 5.6% YoY in February when compared to 5.3% expected and 5.3% seen in the January reading.

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The Euro area inflation data is featured a trading day after Germany’s annual HICP for February, which rose by 9.3%, beating 9.0% estimates while following a 9.2% increase seen in January.

The ECB inflation target is 2%.

The bloc’s HICP figures hold significance, as it would help investors reprice the European Central Bank’s (ECB) rate hike expectations. Market expectations currently attach a 65% probability to a 50bp hike in May, with a 50 bps March rate hike almost a done deal, as endorsed by several ECB policymakers.