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Euro zone inflation falls less than expected in February

For the first time since the onset of the energy crisis, the annual rate of food inflation has overtaken energy inflation in the euro zone
For the first time since the onset of the energy crisis, the annual rate of food inflation has overtaken energy inflation in the euro zone

The annual rate of inflation across the euro area slowed marginally to 8.5% in February from 8.6% in January, according to an initial estimate from Eurostat.

This is higher than most forecasters had expected.

For the first time since the onset of the energy crisis, the annual rate of food inflation has overtaken energy inflation.

Food inflation is estimated to have risen to an annual rate of 15% last month, up from 14.1% in January.

By contrast, energy inflation fell last month to an annual rate of 13.7%, down from 18.9% in January - the lowest annual rate of energy inflation since June 2021.

Core inflation, which strips out food and energy prices, rose from 5.3% in January to 5.6% in February.

An initial estimate from the Central Statistics Office here yesterday showed that the annual rate of inflation went back up to 8% in February from 7.5% in January.

Among the 20 countries that use the euro, Luxembourg had the lowest inflation rate, reaching 4.8% in February, Eurostat said.

Belgium was second lowest with consumer prices hitting 5.5% last month.

ECB chief Christine Lagarde last month said the institution plans to raise its interest rates by a half percentage point at the next meeting in March.

According to separate Eurostat data published today, the unemployment rate in the euro zone remained stable in January at 6.7%.