European Union's annual inflation was 0.8 percent in February 2014, down from 0.9 percent in January, and remains below the European Central Bank's 2 percent target, regional statistics office Eurostat said Monday.

Relatively stable inflation eased some economists' concerns about whether the euro bloc will suffer deflation, potentially derailing economic growth.

The Euro area's annual inflation was 0.7 per cent in February; down from 0.8 per cent in January 2014 compared with 1.8 per cent in the same month of 2013. Its monthly inflation was 0.3 per cent in February 2014.

Meanwhile, EU's annual inflation was 0.9 percent in January 2014, down from 1.0 percent in December 2013 and 2.1 percent year-on-year.

Eurostat's data shows annual negative rates in Bulgaria (-2.1 percent), in the Greek Cypriot administration (-1.3 percent), Greece (-0.9 percent). The highest increase rates were in the UK and Finland with a 1.6 percent rise.

Eurostat said the annual inflation fell in seventeen member states, remained stable in three and rose as seen in others compared with January 2014.

Tobacco registered the highest rise in February at 0.08 percent. Electricity, cafes, restaurants each increased 0.06 percent.  Fuels for transport (-0.30 percent) and telecommunications (-0.10 percent) and heating oil (-0.07) had the biggest downward impact, the statistics office said.

Economists say deflation (a decrease in the general price level of goods and services) in the EU encourages European consumers to put off buying goods until they become cheaper. Deflation weakens the economy as producers reduce output.