Eurozone: Inflation soars to four-year high in January
February 22, 2017
Complete data released by Eurostat on 22 February confirmed that harmonized inflation was 1.8% in January, above December’s 1.1% and the highest reading seen since February 2013. The result was in line with the preliminary estimate. According to Eurostat, a sharp rise in energy prices along with an increase in food, alcohol and tobacco prices drove the result. Annual average inflation rose from December’s 0.2% to 0.4% in January, an over two-year high.
Core inflation was steady at December’s 0.9% in January. Meanwhile, harmonized consumer prices fell 0.8% in January on a monthly basis, contrasting December’s 0.6% rise.
Looking at the countries in the common-currency bloc, 8 of the 19 Eurozone economies showed inflation rates equal to or above the regional average. Belgium (3.1%), Spain (2.9%) and Latvia (2.9%) were the economies with the highest rates. On the other side of the spectrum, Ireland (0.2%), Cyprus (0.7%) and Slovakia (0.9%) saw the lowest price pressures. Among the remaining largest economies in the Eurozone, Germany saw the highest inflation (1.9%), followed by France (1.6%) and finally Italy (1.0%).