Consumer borrowing continues to grow strongly, according to the latest official figures. Private sector credit grew by 20.9 per cent on an annual basis in January - compared to 21.3 per cent in December.

The Central Bank described the difference between the two figures as an easing in growth but it was dismissed as insignificant by private sector economists.

The rate of growth in mortgage lending also fell slightly to 24.1 per cent in January from 24.3 per cent. Once again the fall was not considered significant by independent observers. European credit figures, also published yesterday, show that credit growth across the eurozone eased from 9.5 per cent in December to 9.1 per cent in January. Mr Austin Hughes, economist with IIB Bank, pointed out that the Central Bank's reference yesterday to a continued easing in credit growth was at odds with remarks made by the governor of the bank, Mr Maurice O'Connell, to an Oireachtas Committee last week. The governor was concerned credit growth remained at over 20 per cent.

The bank has written to institutions in recent weeks requesting they adopt more stringent lending criteria. Ms Geraldine Concagh, economist with AIB, said the credit growth figures were not surprising and reflected buoyant lending. "You would not call it a significant slowdown," she said. The January rate compares with an average annual growth rate of 25.3 per cent last year.

Euro-zone annual inflation unexpectedly slipped in January to 2.4 per cent from 2.6 per cent in December, according to figures released by Eurostat, the European Union statistical agency.

The decline will fuel expectations that falling inflation in the coming months will give the European Central Bank room to counter a slight growth slowdown with an interest rate cut.

Irish inflation - as measured by the EU - fell to 3.9 per cent in January compared to 4.6 in December.