Inflation across the eurozone accelerated to 2.4 per cent year-on-year in February, the EU confirmed yesterday as fears mount that rising prices could put a brake on economic growth.

Up from 2.3 per cent in January, according to European Union data agency Eurostat, the rate is above the European Central Bank’s hopes for medium-term inflation at slightly below two per cent across the 17-nation currency area. February marks the third successive month above that target after ECB chief Jean-Claude Trichet warned recently that rising commodity prices means “strong vigilance” is needed.

That harder line was interpreted as signalling an earlier-than-expected rise in interest rates, possibly in April.

The February rate for the eurozone, pushed up notably by a rise in transport or fuel costs, is the highest since October 2008, when it hit 3.2 per cent.

A year earlier the rate was 0.8 per cent.

The rate across the full 27-state EU was 2.8 per cent in February, unchanged from the previous month.

The lowest national annual rate in February was found in Ireland, 0.9 per cent, with Romania posting the highest at 7.6 per cent.

Eurostat said the main components with the highest annual rates in February were transport at 5.7 per cent and housing on 4.9 per cent.

The lowest was for clothing at minus 2.6 per cent.

London-based IHS Global Insight analyst Howard Archer said the figures suggested that “interest rates are likely to rise in April.”

He cited “markedly higher energy prices, up 13.1 percent year-on-year, reflecting the spike in oil prices.”

By comparison, he said total hourly labour costs ac-ross the eurozone rose by a modest 1.6 per cent year-on-year in the fourth quarter of 2010.