EU inflation rises, output drops

Rising energy costs threaten to further weaken region's economy

ZURICH / BRUSSELS - European inflation accelerated in February while manufacturing output contracted as political tensions in the Middle East boosted oil prices even as the economy heads into a recession.

The inflation rate in the 17-nation eurozone rose to 2.7 percent from 2.6 percent in January, the European Union's statistics office in Luxembourg said in an initial estimate on Thursday.