Eurozone Inflation Rate Slows to 1.3% as Expected


Eurozone consumer price inflation is expected to decrease to a six-month low of 1.3 percent year-on-year in January 2018 from 1.4 percent in the previous month and in line with market forecasts.

Looking at the main components of euro area inflation, prices are expected to rise at a softer pace for energy (2.1 percent vs 2.9 percent in December) and food, alcohol and tobacco (1.9 percent vs 2.1 percent). Meanwhile, services inflation should remain unchanged at 1.2 percent and cost of non-energy industrial goods is set to increase at a faster 0.6 percent, compared with 0.5 percent in December.

Annual core inflation, which excludes volatile prices of energy and unprocessed food and tobacco and at which the ECB looks in its policy decisions, is expected to edge up to 1 percent from 0.9 percent in December.

Eurozone Inflation Rate Slows to 1.3% as Expected


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
1/31/2018 10:15:49 AM