German Inflation Falls Below Two Percent Amid Rising Prices in the USA

The economic situation in Europe is beginning to diverge markedly from trends observed across the ocean. In February 2026, consumer price inflation in Germany slowed to 1.9% year-on-year, a result better than analysts' forecasts. The main factor curbing price growth in the eurozone's largest economy was a decline in energy costs, which offset rising services. This is the first time in a long while that price dynamics in Germany have fallen below the inflation target set by the ECB. Meanwhile, France recorded a monthly price jump of 1%, showing that the disinflation process in Europe remains uneven. The European Central Bank has been conducting the most aggressive interest rate hike cycle in its history since 2022, trying to curb inflation, which at its peak exceeded 10%.A contrasting picture emerges from data coming from the United States. The PPI, measuring producer inflation, rose by 0.5% in January, significantly exceeding market expectations. The main source of inflationary pressure has shifted from goods to services, casting doubt on the imminent loosening of monetary policy by the Federal Reserve. The reaction of financial markets was immediate—despite negative inflation data, the yield on US Treasury bonds fell below 4%, and European stock indices, including the British FTSE 100, reached local peaks. Investors seem to be pricing in a 'soft landing' scenario for the economy, though concerns are raised by the situation in the private credit market in London. Strategic commodity markets traditionally serve as safe havens during periods of uncertainty, and gold has been viewed for centuries as a hedge against the loss of value of fiat currencies.Global sentiment is significantly affected by rising military tensions between the USA and Iran, which translated into increases in oil prices on world exchanges. Gold continues its winning streak, marking its seventh consecutive month of gains, a result of the confluence of geopolitical risks and concerns about the sustainability of disinflationary trends in North America. Meanwhile, in Latin America, Brazil has decided to partially roll back import tariff hikes, trying to balance budget revenues with rising inflation, which in that country has exceeded forecasts. Argentina, on the other hand, has taken a step towards structural reforms, with the Senate passing a new criminal reform law, aimed at calming social sentiment amid the crisis. „Our primary mandate is price stability, and we will not rest until inflation returns to two percent over the medium term.” — President of the European Central Bank, overseeing monetary policy in the eurozone.

Perspektywy mediów: Media emphasize the success of the fight against inflation in Europe and the necessity of rate cuts to save GDP growth. Commentators point to dangerous wage pressure in the USA and the risk of a return of the inflationary spiral.