Inflation within the euro zone eased barely within the month of February, following feedback from the European Central Financial institution chief that bringing the speed down will take a while.

Headline inflation throughout the 20-member bloc got here in at 8.5% in February, in line with preliminary knowledge launched Thursday. This means that costs are usually not coming down on the tempo that had been registered in latest months. Headline inflation stood as excessive as 10.6% in October, however reached a revised 8.6% in January.

Analysts polled by the Wall Road Journal had been anticipating a decrease February inflation price of 8.2%.

Meals costs elevated month-on-month, offsetting declines in power prices.

Core inflation picked as much as an estimated 5.6% in February, from 5.3% in January.

In latest days, market gamers have been questioning whether or not the ECB should maintain its hawkish stance for longer, following hotter-than-expected February inflation figures from France, Germany and Spain.

ECB President Christine Lagarde mentioned Thursday that bringing down inflation will nonetheless take time, in line with feedback reported by Reuters. The financial institution targets a headline price of two%.

The Frankfurt-based establishment has indicated that one other 50 foundation level hike is on the playing cards for when the central financial institution adjourns later this month. In feedback reported by Reuters, Lagarde mentioned Thursday that this transfer remains to be on that desk, as inflation stays properly above goal.

Analysts at Goldman Sachs mentioned earlier this week that they had been elevating price hike expectations for the ECB and pricing in one other 50 foundation factors hike in Might.

European bond yields have been shifting at multi-year highs in latest days, amid concerns that the hawkish financial coverage is right here to remain.