Eurozone Inflation Falls Less Than Expected

The eurozone annual inflation rate fell to 8.5 percent in February, the EU's statistics agency said Thursday, but the drop was less than expected as food costs soar

Brussels, (UrduPoint / Pakistan Point News - 2nd Mar, 2023 ):The eurozone annual inflation rate fell to 8.5 percent in February, the EU's statistics agency said Thursday, but the drop was less than expected as food costs soar.

Inflation was down last month from 8.6 percent in January but analysts at financial data firm FactSet had forecast a steeper fall to 8.2 percent, while the Bloomberg consensus was 8.3 percent.

Annual inflation has slowed down since it hit a peak of 10.6 percent in October last year, but it remains much higher than the European Central Bank's (ECB) target of two percent.

A continued decline in the rate of energy costs had pushed consumer prices lower but in February the rise in food and drink costs outpaced that of energy.

Food and drink prices rose by 15 percent last month compared with 14.1 percent in January, according to Eurostat.

Energy cost rises fell to 13.7 percent, compared with 18.9 percent in January.

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

Belgium was second lowest with consumer prices hitting 5.5 percent 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 Eurostat data published Thursday, the unemployment rate in the eurozone remained stable in January at 6.7 percent.