"Eurozone Inflation Eases Slightly in February 2024, Prompting ECB Caution"

In the euro zone, inflation eased to 2.6% in February, slightly higher than expected, with core inflation at 3.1%, above the 2.9% forecast. Food, alcohol, and tobacco had the highest inflation rate at 4%, while energy prices continued to decrease. Investors are speculating on a potential interest rate cut by the European Central Bank in June, but policymakers are waiting for spring wage negotiations to assess domestic inflationary pressures. Despite the headline rate moving closer to the ECB's 2% target, core inflation remains above 3%, indicating a mixed outlook for policymakers.