Euro-zone Jan. inflation lower than first estimate : Report

LONDON
The annual rate of inflation in the euro zone was lower than first estimated in January, although still well above the European Central Bank's target
The European Union's official statistics agency Eurostat Wednesday said consumer prices in the 17 countries that use the euro rose by 2.6% in the 12 months to the end of January
Earlier this month, it estimated that the annual rate of inflation was 2.7%
Prices fell by 0.8% from December, the largest month-on-month decline since January 2010 Relatively large declines in prices are common in the first month of the year due to post-holiday discounting by retailers, particularly of clothing
In January, clothing prices fell by 14.1%
While the fall in the annual rate of inflation from 2.7% in December will be welcomed by the ECB, policy makers will likely be concerned that the inflation rate remains above their target of slightly less than 2.0%
There has also been a worrying recent rise in oil prices denominated in euros, as well as higher-than-expected inflation readings from Germany for February
With recent surveys and indicators suggesting the euro-zone economy has stabilized in the early part of the year, albeit still at risk of a mild recession, the ECB is likely to leave its key interest rate unchanged at 1.0% when its governing council meets next week.
Eurostat said that excluding volatile items such as energy and food, prices fell by 1.7% from December, leading to an annual rate of core inflation of 1.5%, down from 1.6% in December