The annual inflation rate in the euro area dropped to 2.6% in February, down from 2.8% in January, exceeding the market expectations of 2.5%, Eurostat announced provisional figures on Friday, Paralel.Az reports citing Anadolu Agency.

The price increase of food, alcohol and tobacco was the highest annual rate in February with 4%, followed by services with 3.9%, and non-energy industrial goods with 1.6%, Eurostat said.

Meanwhile, energy prices dropped by 3.7% year-on-year in February.

The annual inflation rate was 8.5% in February 2023.