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Eurozone Inflation Rises to 2.5% in January, Surpassing Market Expectations

The annual inflation rate in the Eurozone increased to 2.5% in January, according to preliminary data released by Eurostat, the European Union’s statistics office.

Eurozone Inflation Exceeds Forecasts

In December, the annual Consumer Price Index (CPI) stood at 2.4%, but it rose to 2.5% in January. On a monthly basis, inflation declined by 0.3% in January.

Market expectations had predicted the annual inflation rate would remain at 2.4% for January.

Core Inflation Recorded at 2.7% Annually

Core inflation, which excludes volatile items such as energy and food, stood at 2.7% on an annual basis in January.

Sectoral Breakdown of Inflation

Among the main components of inflation:

  • The highest price increase was recorded in the services sector at 3.9%
  • Food, alcohol, and tobacco prices rose by 2.3%
  • Energy prices increased by 1.8%
  • Non-energy industrial goods saw a more modest rise of 0.5%

Inflation Rates by Country

In January, the highest inflation rates in the Eurozone were recorded in:

  • Croatia: 5%
  • Belgium: 4.4%
  • Slovakia: 4.1%

Meanwhile, other major Eurozone economies recorded lower inflation rates:

  • Spain: 2.9%
  • Germany: 2.8%
  • France: 1.8%
  • Italy: 1.7%

European Central Bank’s Inflation Target

The European Central Bank (ECB) aims to bring inflation to 2% over the medium term. However, Eurozone inflation has been rising for the past four consecutive months, putting pressure on monetary policymakers.

Source: Patronlar Dünyası/ Prepared by: İlayda Gök

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