Euro zone inflation in February came in line with the European Central Bank's target for a sixth straight month, but economists said this was unlikely to stop the bank from raising interest rates.
European Union statistics office Eurostat estimated today that consumer prices in the 13 countries using the euro rose 1.8 per cent year-on-year last month, unchanged from January, and below consensus market expectations of 1.9 per cent.
Economists said the benign number were likely a result of lower oil prices and limited effects of a rise in German value-added tax this year.
The February estimate comes a week before the ECB, which wants to keep inflation below but close to 2 per cent, is expected to raise rates by 25 basis points to 3.75 per cent.
The bank wants to stem inflationary pressure after credit growth hit 17-year highs in January and the euro zone economy fires on all cylinders with wage talks under way.
Economists said inflation was likely to keep falling in coming months, possibly as low as 1.5 per cent around mid-year before rebounding towards 2 per cent later in the year.