Euro area: February inflation reviewFlash estimate

According to Eurostat's Flash estimate, the Euro area annual headline inflation averaged 1. 9 0 % in February , up from 1. 6 7 % in January . Core inflation, which excludes energy and food, alcohol and tobacco prices, recorded 2. 41 %, versus 2. 19 % in the previous month. Flash estimates by components showed: A high er contribution of Services to annual headline inflation at 1.5 8 pp (1. 48 pp in January ). A broadly unchanged contribution of Food, Alcohol and Tobacco to 0. 49 pp (0. 50 pp in January ). A negative contribution of the e nergy component at -0. 33 pp (-0. 41 pp in January ). A higher contribution of Non-Energy Industrial Goods (NEIG) to 0. 17 pp (0. 10 pp in January ). The intensification of the conflicts in the Middle East is likely to impact inflation upward and economic growth downward, but it will all depend on the duration of the conflicts. In this regard, it is still too early to quantify precisely these impacts at this stage.