Euro zone inflation stabilised in what the European Central Bank has called the "danger zone" in February, according to new data.

The European Union's statistics office Eurostat estimated that consumer prices in the 18 countries sharing the euro rose 0.8 per cent year-on-year this month. That was the same rate as in January and December, after readings of 0.9 per cent in November and 0.7 per cent in October.

ECB president Mario Draghi has warned of the risk of inflation getting stuck in a danger zone below 1 per cent, but said again earlier this week that there was clearly no deflation.

February’s inflation rate was stable because lower energy costs were offset by more expensive industrial goods and services.

But so-called core inflation, which excludes the most volatile components like energy, food, alcohol and tobacco prices, continued to inch higher, to 1 per cent year-on-year from 0.8 per cent in January and 0.7 per cent in December.

Reuters