Inflation in the eurozone rose from 2.3 percent in January to 2.4 percent in February year-on-year, according to the initial estimates by Eurostat.

The Inflation rate in the 17-nation zone was above the European Central Bank's target of slightly below two percent for the third consecutive month.

The ECB aims to keep the inflation rate below the 2 percent over a two-year period. The bank expects the inflation to peak in March.

Separately, Markit data showed manufacturing activity in the eurozone accelerated to a near 11-year high in February, but input costs continued to rise signaling inflationary pressures in the region.

Markit said the input price inflation climbed to record rates in Germany, France, Italy, Spain, the Netherlands and Austria, reached a near-survey peak in Ireland and the fastest since July 2008 in Greece.

“Steep increases in raw material prices may deter firms from recruiting, or drive selling prices even higher in order to protect margins. The recent uptick in oil prices will only add to firms’ cost pressures,” said Chris Williamson, chief economist, Markit.