
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