Official figures show that the annual rate of inflation in the euro zone was lower than initially estimated in January. But it was still well above the European Central Bank's target and is likely to rise further in February due mainly to more expensive oil.
EU statistics office Eurostat revised down its estimate for consumer price growth to 2.3% from an earlier projection of 2.4%. This was still up from December's 2.2%. Month-on-month, prices fell 0.7%.
Fuels for transport added 0.58 percentage points to the overall year-on-year figure and the rising costs of heating oil 0.19 percentage points. Fuel for transport was also the main upward driver in the monthly number, but it was more than offset by January sales of clothes and a drop in the price of holidays.
The European Central Bank wants to keep inflation below, but close to 2% over a two-year horizon. The bank has said inflation is likely to peak in March, but that on average inflation in the euro zone may stay above 2% this year.
Not keen to raise interest rates anytime soon because of the fragility of the economic recovery in the euro zone, the ECB has stepped up its anti-inflation rhetoric, but economists do not expect a rate rise until October.
The ECB also watches what it calls core inflation - price growth excluding the volatile prices of energy and unprocessed food - for signals that shocks from oil and food are translating into price rises elsewhere. Core inflation fell 1.3% month-on-month in January, giving a 1.2% annual rise.
