German Inflation Holds Steady as ECB Readies Rate Cut

By Ed Frankl

Germany's inflation rate was stable this month, putting the European Central Bank in line to cut its key interest rate next week after French inflation was lower than expected.

Consumer prices were 2.8% higher in February than the same month of 2024, the same level as in January, German statistics agency Destatis said Friday, using European Union-harmonized figures.

Italy and Spain's inflation rate also held steady at the same rate as January this month. But with France's dropping dramatically to 0.9% from 1.8%, ECB policymakers will likely be comfortable enough to cut the bank's deposit rate for a fifth meeting in a row next week.

On a national measure, Germany's inflation rate remained the same, at 2.3%, with core inflation--which strips the headline rate of more volatile energy and food prices--dropping to 2.6% from 2.9%.

Write to Ed Frankl at edward.frankl@wsj.com