Annual inflation in the eurozone slowed in January to 8.6%

According to the final data from Eurostat, consumer prices in the eurozone in January 2023 increased by 8.6% compared to the same month in 2022. Thus, inflation in the bloc slowed down from 9.2% in December. 

Earlier, according to preliminary estimates, it was reported an increase in prices in annual terms by 8.5%. On a monthly basis, prices in the eurozone decreased by 0.2%. A year earlier, inflation of 5.1% per annum was recorded in the region.

Core inflation (CPI Core index tracked by the European Central Bank) rose 5.3% year-on-year last month after rising 5.2% a month earlier.

Prices for food, alcohol and tobacco products rose by 14.1% after rising by 13.8% in December. The growth of energy prices slowed to 18.9% after an increase of 25.5% a month earlier. Services have risen in price by 4.4%.

In all 27 EU countries, the price increase in January was 10.0% y/y after an increase of 10.4% a month earlier. Relative to the previous month, prices in the EU increased by 0.2%.

The highest annual inflation in January was recorded in Hungary (26.2%), Latvia (21.4%) and the Czech Republic (19.1%), the lowest in Luxembourg (5.8%), Spain (5.9%), as well as in Cyprus and Malta (6.8% each).