Eurozone inflation unexpectedly accelerates

(Sharecast News) - Eurozone inflation unexpectedly accelerated in February, according to figures out on Tuesday from Eurostat, bouncing off a 16-month low but remaining below the European Central Bank's 2% target. The annual change in the region's consumer price index was 1.9% last month, up from 1.7% in January and surprising economists who had pencilled in no change.

Service-sector inflation picked up to 3.4% from 3.2% the month before, while food, alcohol and tobacco inflation held steady at 2.6%.

Non-energy industrial goods inflation picked up to 0.7% from 0.4%, while energy price deflation eased to -3.2% from -4.0%.

Excluding the more volatile energy, food, alcohol and tobacco items, core inflation accelerated to 2.4% from 2.2% the month before.

Across member states, the highest rates of inflation were seen in Slovakia (4.0%), Croatia (3.9%) and Spain (2.5%), while the lowest rates were recorded in Cyprus (0.9%), France (1.1% and Belgium (1.4%).