German inflation slows to 2-year low in February

Inflation in Germany, Europe's biggest economy, slowed to its lowest level in more than two years in February, official data showed on Tuesday. The cost of living in Germany increased by 1.5 percent on a 12-month basis this month, down from 1.7 percent in January, the federal statistics office Destatis calculated in final data. On a monthly basis, the consumer price index (CPI) rose by 0.6 percent in February from January. The data confirm a preliminary estimate already released at the end of last month. The last time, the annual inflation rate was lower was in December 2010, when it had stood at 1.3 percent. Using the Harmonised Index of Consumer Prices (HICP), the ECB's inflation yardstick, the rate of inflation in Germany also eased to 1.8 percent in February from 1.9 percent in January, Destatis said. The ECB defines price stability as increases in HICP of close to but just below 2.0 percent.