Inflation in the euro area fell slightly in February 2023, sliding to 8.5% thanks to moderate increases in energy prices, while Croatia was among the countries with double-digit price hikes, Eurostat's flash estimate showed on Thursday.

Euro area annual inflation is expected to be 8.5% in February 2023, down from 8.6% in January 2023 and 9.2% in December 2022, the European Union’s statistical office said.

“Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in February (15.0%, compared with 14.1% in January), followed by energy (13.7%, compared with 18.9% in January), non-energy industrial goods (6.8%, compared with 6.7% in January) and services (4.8%, compared with 4.4% in January),” Eurostat said.

The highest annual inflation rates were recorded in the Baltic countries, led by Latvia (20.1%) and followed by Estonia (17.8%) and Lithuania (17.2%).

The group of countries with double-digit rates included Slovakia (15.5%), Croatia (11.7%) and Austria (11.0%).

In January 2023, the annual inflation rate in Croatia was 12.5%.