"Inflation biting into the economy is quite damaging"
- Marco Valli, chief euro zone economist at Unicredit
Euro zone consumer prices rose in February, piling pressure on the ECB after it refrained from raising interest rates this month. The inflation rate rose 2.7 per cent from the same period last year, said the European Statistical Office (Eurostat) on Wednesday.
"Inflation biting into the economy is quite damaging," said Marco Valli, chief euro zone economist at Unicredit. "Any further rises in prices would be a risk to growth," he said.
In a separate report the Eurostat said industrial production advanced 0.2 per cent in January from December, a sign the bloc may be heading towards recovery from recession.
"The latest industrial figures do not provide much comfort," said Ben May, an economist at Capital Economics.
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