Euro zone consumer prices rose by a smaller-than-expected 0.9 per cent year-on-year in February, a first estimate from the European Union's statistics office showed today, slowing from a 1.0 per cent gain in January.
Economists polled by Reuters had on average expected a 1 per cent year-on-year increase. There are no details or breakdown available with the flash estimate.
The European Central Bank wants to keep inflation just below 2 per cent over the medium term and will meet to decide on interest rates on Thursday.
Separately, Eurostat said prices at factory gates in the 16 countries using the euro rose 0.7 per cent month-on-month in January and were down 1.0 per cent year-on-year.
Economists polled by Reuters had expected a 0.6 per cent monthly rise and an annual decline of 1.1 per cent.
The main factor behind the monthly rise was energy prices, which jumped 2 per cent against December. Energy had the biggest downward pull on the annual figure, declining 1.7 per cent year-on-year.
Producer prices are important to the ECB because they show inflationary pressure, or the reverse, early in the pipeline.
Reuters