The Eurozone inflation rate is expected to slow slightly in January to 1.3% from the previous month when it was at 1.4%, according to the preliminary estimates of the European Statistical Office Eurostat. Despite a slight slowdown, however, the growth remained above expectations of analysts predicting the rise in prices was 1.2%.
The Euro depreciated to 1.2448 USD shortly after publishing Eurostat data versus 1,2454 USD previously.
The main driver of consumer prices, as well as in recent months, comes from energy prices, although growth is slowing down compared to last month’s last year from 2.9% to 2.1%. The prices of food, alcohol and tobacco also slightly slowed against December – from 2.1% to 1.9%.
The rise in service prices remained unchanged at 1.2%. Only non-energy industrial goods prices show a slight increase – from 0.5% in December to 0.6% in January.
However, the core inflation, which excludes changes in volatile commodity prices such as energy and food, and is considered a more accurate indicator, however, slightly accelerates to 1.0%. For the previous three months, it remained unchanged at 0.9%.
The final Eurostat data on inflation in the Eurozone and the European Union as a whole will be published on February 23rd.