Spain's CPI Hits 3%, Germany's Inflation Falls to 2.6%, France's Below 1% in February 2025

Inflation rates across major European economies showed varied movements in February 2025. In Spain, the Consumer Price Index (CPI) rose to 3% year-over-year, driven by higher electricity costs, which increased by 28.1% following the reinstatement of the standard VAT rate. The Spanish core CPI, which excludes volatile items like food and energy, stood at 2.2% year-over-year, marking the lowest rate in over three years. Notably, the price of olive oil decreased by 32.3% over the last year. Germany experienced a decline in inflation to 2.6% year-over-year in February, offering the European Central Bank (ECB) more room for potential easing measures. This decrease was influenced by lower energy prices, down 1.6%, despite increases in food prices by 2.4%. In France, inflation remained below 1% for the first time in four years, with the harmonized inflation rate at 0.9% year-over-year, reflecting a significant drop in energy prices. In the United States, the Producer Price Index (PPI) for February showed no month-over-month change, contrary to expectations of a 0.3% increase. The year-over-year PPI rose to 3.2%, while the core PPI, excluding food and energy, decreased by 0.1% month-over-month and stood at 3.4% year-over-year. In Germany, services prices rose by 3.8% and goods prices by 0.9%.