Eurozone Core Inflation Falls to 4-Year Low

The annual core inflation rate in the Euro Area, which excludes prices of food, energy, and tobacco, fell to 2.2% in January of 2026 from 2.3% in the earlier month, according to a flash estimate. The gauge measured the lowest increase in core prices since October of 2021, before the Russian war in Ukraine shocked the supply of European energy and triggered record-setting inflation in the currency block.

The annual core inflation rate in the Euro Area, which excludes prices of food, energy, and tobacco, was at a four-month low of 2.3% in December 2025, matching the preliminary reading, down slightly from November's 2.4%. From the previous month, the core consumer price index rose by 0.3% in December, in line with the earlier estimate, after a 0.5% decrease in November. In the broader EU, core inflation also eased to a four-month low of 2.5%, from November's 2.6%.

The annual core inflation rate in the Euro Area, which excludes prices of food, energy, and tobacco, was at 2.4% for the third consecutive month in November of 2025, aligned with the preliminary estimate. Since reaching a near four-year low of 2.3% in May, core inflation in the bloc has remained steady, supporting ECB comments that additional rate cuts are unlikely. On a monthly basis, core consumer prices fell by 0.5% in November, matching the earlier estimate.