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Euro zone inflation holds at 1.8%

Official figures show that inflation in the euro zone held steady in February at 1.8%. The report, from the EU's Eurostat data agency, confirmed a previous estimate.

The rate was spot on economists' forecasts and was in line with the European Central Bank's preferred level of close to but less than 2%.

The stability of euro zone inflation since the beginning of the  year has confounded many economists and politicians' expectations  for a surge after Germany raised VAT by three   percentage points in January.