Eurozone January Inflation Confirmed at 9-Month Low

The annual inflation rate in the Euro Area came in at 1.4 percent in January 2019, unchanged from the preliminary estimate and below December's final reading of 1.5 percent. It was the lowest rate since April.

Energy prices increased 2.7 percent in January, easing from a 5.5 percent advance in December. Meanwhile, inflation was unchanged for unprocessed food (at 1.8 percent) and picked up for services (1.6 percent from 1.3 percent), non-energy industrial goods (0.3 percent vs 0.2 percent) and processed food, alcohol & tobacco (1.8 percent vs 1.7 percent).

Among Eurozone's largest economies, the highest annual rate was registered in Germany (1.7 percent), followed by France (1.4 percent), Spain (1 percent) and Italy (0.9 percent).

Annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, rose to 1.1 percent in January from 0.9 percent in December.

On a monthly basis, consumer prices fell 1 percent, compared to market consensus of 1.1 percent drop, due to declines in cost of energy (-0.9 percent), services (-0.5 percent) and non-energy industrial goods (-3.3 percent) while food, alcohol & tobacco prices went up 0.6 percent.

Eurozone January Inflation Confirmed at 9-Month Low

Eurostat | Joana Ferreira |
2/22/2019 10:26:06 AM