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Eurozone inflation hits 2.7pc in February

EUROZONE inflation reached 2.7pc in February although Germany and France, the two biggest economies, recorded lower figures.

It marked the 15th month running that the rate exceeded the European Central Bank’s target of below but close to 2pc after peaking at 3pc in September.

The ECB monitors inflation in its interest rate decision making process and the latest figure will put pressure on the bank’s governing council not to cut rates in the short to medium term.

France and Germany each posted 2.5pc annual inflation, with the Spanish figure down to 1.9pc in Spain, where new austerity measures are kicking in on top of rampant unemployment and a very deep recession.

Transport and housing costs pushed the rate in the 17-member eurozone up.