Inflation in Germany, Europe 's largest economy, fell to an annual rate of 1.5 per cent in February — the lowest in more than two years, official figures showed today.

The Federal Statistical Office said inflation would have been 1.1 per cent were it not for higher energy and food prices.

February’s rate was down from 1.7per cent in January and 2 per cent in December.

The last time it was so low was in December 2010 when inflation stood at 1.3 per cent.

The German rate is now well below the European Central Bank 's target of keeping price rises just below 2 per cent.

The overall February rate for the 17 countries that use the euro currency has been estimated at 1.8 per cent, according to recent figures from the European Union 's statistics office.

AP