Preliminary calculations by Eurostat showed a significant increase in the core inflation rate. The inflation figures for February will therefore confirm the ECB's intention to raise interest rates further, economists at Commerzbank report.

Core inflation jumps to 5.6%

“Hopes for a strong decline in the inflation rate in February were not fulfilled. It eased only slightly from 8.6% to 8.5%. While energy prices fell, food prices rose and core inflation increased from 5.3% to 5.6%.”

“Given the renewed strengthening of underlying inflation, it seems almost certain that the ECB will raise its key rates by another 50 basis points at the mid-March meeting.”