(Adds dropped word ‘inflation’ to headline)
By Rachel More
BERLIN (Reuters) -German inflation remained flat in February for the second month in a row at 2.8%, preliminary data from the federal statistics office showed on Friday, despite forecasts suggesting a slight slowdown in price pressures in Europe’s largest economy.
Analysts polled by Reuters had forecast a February reading of 2.7%, based on year-on-year data harmonised to compare with other European Union countries.
The data comes as the country steels itself for thorny coalition talks following a snap election, meaning many weeks of uncertainty at a time when the economy is in sharp need of a boost.
Increasing competition from abroad, high energy costs, still elevated interest rates and uncertain economic prospects have taken a heavy toll on the German economy, which contracted in 2024 for the second year in a row.
The German data comes ahead of the euro zone inflation release on Monday. Inflation in the currency bloc is expected at 2.3% in February, down 0.2 percentage points on January, according to economists polled by Reuters.
The European Central Bank is expected to cut interest rates next week for the sixth time since June as inflation is now close to target and seen easing further in the coming months.
(Reporting by Rachel More; editing by Matthias Williams and Ludwig Burger)
