Euro zone inflation falls to 2.1 per cent

Euro zone inflation slowed in January to 2.1 per cent from 2.3 per cent the previous month, the EuropeanUnion's statistics office said today.

However, the rate remains slightly above a 2-per cent limit considered to be the maximum tolerable level by the European Central Bank.

Eurostat's preliminary estimate is based on data from Belgium, Germany and Italy as well as movements in oil prices during the month.

It warned the Janauary estimate "carries a greater uncertainty than past performance would indicate" because the data from Germany was based on a basket of products defined six years ago, while anewer basket would be used in a later final estimate.

AFP