Inflation eases in January from December

Latest reading: Harmonized consumer prices rose 2.9% in annual terms in January, following a 3.4% rise in the prior month. January's reading was the weakest since November 2024 but remained above the euro area average of 1.7% and the ECB’s 2.0% target. Relative to the prior month's data, there were milder price pressures for food and non-alcoholic beverages (+4.0% on a year-on-year basis vs +4.3% in December), transportation (-2.2% vs +0.7% in December), housing and utilities (+6.0% vs +6.9% in December) and recreation (+1.7% vs +2.5% in December). In contrast, price pressures were higher for restaurants and hotels in January (+4.0% vs +2.8% in December). Meanwhile, consumer prices rose 2.9% on a year-on-year basis in January, following a 3.4% increase in the previous month. Finally, harmonized consumer prices were down 0.06% in January in month-on-month terms, following a 0.05% fall in the previous month.

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