Inflation Remains Stagnant in Euro Zone, Trade Activity Revives  

As of February 2024, the confirmed yearly inflation rate in the Euro Area was 2.6%, marking the lowest in three months, yet still surpassing the 2% target that the European Central Bank set. Energy prices dipped by 3.7%, compared to a 6.1% fall in January. Inflation growth experienced a slowdown for food, alcohol & tobacco at 3.9% (down from 5.6%), and for non-energy industrial goods at 1.6% (down from 2%). Nevertheless, the inflation rate for services remained steady at 4.0%. Discounting unstable food and energy prices, the core inflation rate stood at 3.1%, marked as the lowest since March 2022. Furthermore, in February, consumer prices saw a monthly increase of 0.6%, following a 0.4% decrease from the previous month, January. 

(Euro Area Inflation Rate YoY%，EUROSTAT)  

In contrast to a deficit of €32.6 billion in the same frame last year, a substantial rise to a surplus of €11.4 billion was noted in the Eurozone’s trade balance in January 2024. There was 1.3% year-on-year growth in exports, resulting in a total of €225.9 billion. This surge was primarily due to increased dispatches of miscellaneous manufactured items (+3.3%), manufactured goods (+1.2%), chemical products (+3%), and machinery and transportation equipment (+1.5%). Exports experienced major growth to the US, Japan, and Switzerland, while observing a fall to Russia, China, and Norway. 

Meanwhile, imports demonstrated a decline of 16.1%, down to €214.5 billion. This trend reflects reductions in several purchase categories, especially mineral fuels, lubricants, and similar products (-36.4%), miscellaneous manufactured goods (-13%), manufactured goods (-12.6%), and chemicals (-10.4%). There was a noticeable downturn in imports from countries such as China, the US, Switzerland, Norway, Russia, Japan, and India. 

(Euro Area Balance of Trade，EUROSTAT) 

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