BRUSSELS (AFP) - Eurozone manufacturing and service activity in February hit levels last seen in July 2006 but inflation, an increasing concern, also jumped sharply, a closely watched survey showed on Monday.

The Eurozone composite output index compiled by the Markit research firm rose 1.4 points from January to 58.4 points in February.

Service business activity alone rose to 57.2 points from 55.9 points in January, with manufacturing output at 61.1 points, up from 59.4 points for a 10-month high, Markit said in a statement.

The eurozone manufacturing sector purchasing managers index, a forward looking measure, hit 59 points, its highest since June 2000, up from from 57.3 points.

Sweden’s central bank last hiked its most important key interest rate for the fifth time since July as the country’s economy booms and its currency rallies against the euro. "The Swedish economy remains strong, and the labour market situation is steadily improving. Exports and investment are increasing, and so is household consumption", the Riksbank said.