By Ralph Atkins in London

Eurozone inflation fears were stoked further on Friday when February’s rate was revised upwards to a fresh 14-year high of 3.3 per cent, strengthening the European Central Bank’s case for keeping its interest rates firmly on hold.

The latest figure, up from the 3.2 per cent reported initially, provided the latest evidence that the surge in price pressures is proving significantly longer-lasting than the ECB had envisaged. The rise has been driven by fuel and food price increases.

The figure for March could be even higher, analysts said. “Inflation could hit 3.4 per cent this month, which may be the peak, though we think the average for the year will be about 3 per cent – the highest since the launch of the euro,” said Nick Matthews at Barclays Capital.

The ECB, which aims to keep annual inflation “below but close” to 2 per cent, has left its main interest rate unchanged at 4 per cent since June last year, in spite of the Federal Reserve slashing US borrowing costs.

Jean-Claude Trichet, ECB president, made clear this month that he saw the anchoring of inflationary expectations as especially important at times of financial turmoil.

From the Frankfurt-based institution’s point of view, the strong euro has the advantage of curbing inflationary pressures – although Klaus Liebscher, Austria’s central bank governor and an ECB governing council member, on Friday signalled increased concern about the currency’s recent surge. “What we have seen is a dramatic, or substantial weakening of the US dollar,” Mr Liebscher told Dow Jones.

As well as food and fuel price rises, the ECB is also wary of inflationary wage deals, especially in Germany, where years of wage moderation might be coming to an end.

Friday’s figures showed food price inflation hit 5.8 per cent in February, while energy price inflation remained above 10 per cent. Adding to the ECB’s worries, measures of “core” inflation, excluding fuel and food prices, are also creeping higher. Inflation excluding energy and unprocessed foods reached an annual rate of 2.4 per cent in February, from 2.3 per cent in January.

Among the 15 eurozone countries, inflation was lowest last month in the Netherlands, where the annual rate was just 2 per cent. Among the large countries, Spain’s rate remained at 4.4 per cent. But the fastest rates were in some of the smallest member states – including Slovenia and Cyprus.