By Geoffrey Smith
Investing.com -- Headline inflation in the euro zone eased slightly in February, according to preliminary data from Eurostat, but the core rate rose again, keeping the pressure on the European Central Bank to continue raising interest rates.
Eurostat said on Thursday that consumer prices rose a chunky 0.8% from January, both for the all-items index and for the index that excludes volatile food and energy prices.
That left the annual headline rate at 8.5%. down from 8.6% in January.
However, the core rate of inflation - excluding food, energy, alcohol, and tobacco - rose to 5.6% from 5.3%, rising further above the ECB's medium-term target of 2%.
ECB officials have stressed in recent days that a 50 basis point hike in its key rates at its meeting in March is a near-certainty, but a succession of stronger-than-expected economic data since the start of the year has led market participants to price in further rate hikes in the course of the year. Short-term interest rate futures now imply its deposit rate peaking at 4%, which would be a record high in the euro's 24-year life.