Eurozone inflation drop to 0.9 per cent confirmed

(BRUSSELS) - Annual inflation fell slightly in the 16-nation eurozone to 0.9 percent in February, the first drop since last summer, official figures confirmed Tuesday.

The small drop from the 1.0 percent inflation rate recorded by the EU's Eurostat data agency in January was confirmed by the EU's Eurostat statistics bureau, following a flash estimate early in the month.

The dip in the inflation rate in February is the first since the eurozone's historic low of minus 0.7 percent in July 2009, when the effects of the global downturn were pulling hard.

The figures come amid high unemployment levels and a falling euro.

For the 27-nation European Union as a whole inflation stood at 1.4 percent in February, down from 1.7 percent in January.

The inflation rate remains significantly below the European Central Bank's (ECB) target of close to but below two percent.

The inflation rates for individual nations varied widely, from a 5.3 percent annual rise in Romania, and 4.6 percent in Hungary to negative inflation of 0.9 percent in Portugal and 2.2 percent in the former Celtic Tiger economy of Ireland.

Unemployment in the 16-nation eurozone remained at 9.9 percent in January, providing more evidence that Europe's recovery from the worst recession in decades is a largely jobless one.

February 2010 Euro area annual inflation down to 0.9% EU down to 1.4% [Eurostat]