Euro area annual inflation falls to 2.8% in January, as expected

By Tuba Ongun

The annual consumer inflation in the euro area eased to 2.8% in January, in line with market forecast, according to preliminary flash data released on Thursday.

The figure was down from 2.9% in December 2023, the Eurostat data showed.

The core rate, which excludes volatile food and energy prices, dropped to 3.3%, hitting its lowest level since March 2022.

Energy prices decreased to 6.3% in January, following a 6.7% decline in December 2023.

The price rise for food, alcohol, and tobacco cooled to 5.7% last month versus 6.1% in the prior month.

On a monthly basis, the eurozone consumer prices index fell by 0.4% in January, shifting from a 0.2% increase in December.