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French annual inflation rate ebbs in Feb

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Annual inflation eased to 1.8 percent, the data from statistics office INSEE showed, suggesting the risk of a recent acceleration in prices becoming more entrenched has yet to materialise in the euro zone's second largest economy.  Inflation based on EU-harmonised methods of measurement was 1.8 percent, compared to 1.9 percent in January and to an average forecast of 1.9 percent by economists polled in advance by Reuters.

The month-on-month price rise for February was 0.5 percent in EU-harmonised terms.

"Inflation worry is widespread but it (the rate) remains at the low-tide mark in France," said Alexander law, an economist at Xerfi, a business consultancy.

"February price developments offer no justification for preventive rise in (ECB) interest rates.

Copyright Reuters, 2011