The euro-zone annual inflation dropped to 1.8 percent in January, down from 1.9 percent last December, the European Union's statistics bureau Eurostat said on Wednesday.

An earlier estimate by the Eurostat had put the rate at the same level with the previous month. The inflation was much lower than that registered a year ago, which stood at 2.4 percent.

Among the 13 countries sharing the same currency euro, the Netherlands and Finland recorded the lowest inflation in January, standing at 1.0 percent and 1.3 percent respectively, while the rate was the highest in Greece at 3.0 percent.

The new euro-zone member Slovenia was for the first time covered in the statistics as from January.

The inflation was mainly driven by higher prices for alcohol and tobacco, with an increase of 3.7 percent on the yearly basis, while education and housing costs rose by 3.3 percent and 3.1 percent respectively.

Prices for clothing and recreation and culture both rose slightly by 0.1 percent. Telecom services expense kept declining by 1.7 percent, which had the biggest downward impact on inflation.

In the 27-nation EU including the two new members Romania and Bulgaria, inflation also fell to 2.1 percent, compared to 2.2 percent in the previous month and 2.3 percent a year earlier.