Inflation in the 12-member eurozone remained above the European Central Bank's two per cent target, data released Wednesday showed, adding to market expectations of higher interest rates, according to dpa. The so-called flash estimate released by the European Union's Luxembourg-based statistics office showed annual inflation in the currency bloc slipping back from 2.4 per cent in January to 2.3 per cent in February. However, faced with strong energy price pressures, Wednesday's inflation data is also likely to result in the new ECB staff projections to be released Thursday showing another pick up in the bank's inflation forecasts for 2006. Also coming against the backdrop of major indicators pointing to an upswing in the economy as the year unfolds, analysts expect the ECB's 18-head governing council to deliver a 25-basis-points rate increase in its benchmark refinancing rate when it meets Thursday.
