Harmonized inflation fell to 8.6% in January from 9.2% in December, mainly due to a softer increase in energy prices. Inflation should decline this year amid cooling domestic demand, tighter financing conditions and lower energy prices. Second-round effects pose an upside risk, while a stronger-than-expected euro poses a downside risk.
Euro Area Exchange Rate (USD per EUR, eop) Data
|Exchange Rate (USD per EUR, eop)||1.20||1.14||1.12||1.22||1.14|