Consumer prices in the euro zone rose in February for the first time for nine months, but inflation remained low at 1.2% over 12 months, a new EU estimate shows today.
But economists said that the increase was only a brief interruption in the steady drop in inflation, known as disinflation, with consumer prices likely to fall again in the coming months.
If the estimate from the European Union's Eurostat data agency is confirmed, the rise would mark the first time euro zone inflation has increased since peaking in June and July at 4%.
Since then euro zone inflation has fallen steadily and sharply as oil and other commodity prices have collapsed in the face of a deep economic downturn that has sapped consumer and business demand.
Inflation fell in January to 1.1%, the lowest point since July 1999.
Analysts said that the slight increase in inflation was unlikely to derail an expected cut in the European Central Bank's interest rates at a monetary policy setting meeting on Thursday.
The steady drop in inflation since mid 2008 has paved the way for a series of interest rate cuts by the ECB, which has slashed its main rate to a record low point of 2%. The ECB strives to keep inflation within its comfort zone defined as an annual rate close to but less than 2%.
