According to Eurostat data, in January, consumer prices in the eurozone increased by 2.8% year-on-year, which means that inflation is slowing compared to December, when it was 2.9%. Analysts assumed a weakening of the price growth rate to 2.8% as well. The decline in energy prices in January slowed to 6.3% compared with 6.7% in December, while inflation in the service sector remained at 4%. The growth in the cost of food, alcohol and tobacco products also slowed to 5.7% from 6.1%, and industrial products – to 2% from 2.5%. Core inflation, which does not take into account the cost of food and energy (CPI Core index), slowed to 3.3% in January, which is the lowest value since March 2022. The indicator coincided with the forecasts of experts who expected a weakening of core inflation to 3.2%. It is also important to note that consumer prices in the eurozone decreased by 0.4% last month compared to December, when they increased by 0.2%. These data indicate some price volatility, which was observed in January.
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