Eurozone Inflation Slows to 1.7% in January

EthereumCraftsman · 2026-02-04T11:21:32+00:00

Euro area inflation fell to 1.7% in January 2026, the lowest since September 2024, driven by a strong euro and declining energy prices. Core inflation decreased to 2.2%, also below expectations, while varied trends were observed in major economies.

EthereumCraftsman

2026-02-04 11:21:32

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Euro area annual inflation eased to 1.7% year-on-year in January 2026, down from 2.0% in December and in line with market expectations, marking its lowest level since September 2024. The decline came as the euro surged to a more than four-year high above $1.20 at month-end. Services inflation slowed to a four-month low of 3.2%, while energy prices fell further, dropping 4.1% compared with a 1.9% decline in December. By contrast, inflation picked up for unprocessed food (4.4% vs. 3.5%) and non-energy industrial goods (0.4% vs. 0.3%), while price growth for processed food, alcohol, and tobacco remained unchanged at 2.1%. Core inflation, excluding energy, food, alcohol, and tobacco, fell to 2.2%, the lowest since October 2021 and slightly below expectations of 2.3%. Among major eurozone economies, HICP eased in France (0.4% vs. 0.7%), Spain (2.5% vs. 3.0%), and Italy (1.0% vs. 1.2%), but rose in Germany (2.1% vs. 2.0%).

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