In February 2025, eurozone inflation eased to 2.4%, slightly above predictions, indicating ongoing price pressures that may affect the ECB's rate-cut plans. Services inflation remains high at 3.7%, while food and tobacco inflation increased. The ECB is expected to cut rates by 25 basis points in March, but future cuts may be uncertain due to persistent core inflation. The euro strengthened against the dollar, and defence stocks rallied following a summit on increased military spending.