Eurozone inflation slows to 8.5 pct in January: Eurostat
People shop at a store with discount signs in Berlin, Germany, on Feb. 1, 2023. Annual inflation in the eurozone is projected to fall to 8.5 percent in January from 9.2 percent in December 2022, according to a flash estimate published on Wednesday by Eurostat, the European Union's (EU) statistical bureau. (Photo by Stefan Zeitz/Xinhua)
BRUSSELS, Feb. 1 (Xinhua) -- Annual inflation in the eurozone is projected to fall to 8.5 percent in January from 9.2 percent in December 2022, according to a flash estimate published on Wednesday by Eurostat, the European Union's (EU) statistical bureau.
Inflation in the eurozone peaked at 10.6 percent last October and has been slowly decreasing since then.
Energy prices remain the main driver of the eurozone's annual inflation rate, with a 17.2 percent increase compared to January 2022 (25.5 percent in December 2022), followed by prices of food, alcohol and tobacco with a year-on-year increase of 14.1 percent in January (13.8 percent in December 2022).
"The drop from 9.2 percent to 8.5 percent is faster than expected," Bert Colijn, senior economist for the eurozone at ING, explained. Food inflation remains stable at 14.1 percent, but energy drives the rate down at the start of the year. The drop from 25.5 percent to 17.2 percent reflects lower market prices and significant negative base effects, he said.
The year-on-year increase in energy prices peaked last October at 41.5 percent. Since then, energy prices have been decreasing.
Price ceilings for energy had an effect, according to Colijn, who expects energy prices to decline further. "In recent days, both the Brent oil price in euros and natural gas market prices have declined year-on-year, which will put more downward pressure on consumer prices in the coming months."
The Baltic countries projected the highest inflation rates for January: 21.6 percent for Latvia, 18.8 percent for Estonia, and 18.4 percent for Lithuania.
The countries with the lowest annual inflation rate include Spain and Luxembourg, both with 5.8 percent, as well as France with 7 percent.
However, data for Germany for January 2023 were not available in time for publication by Eurostat due to technical data processing issues, Colijn noted. ■
A woman visits a store with discount signs in Berlin, Germany, on Feb. 1, 2023. Annual inflation in the eurozone is projected to fall to 8.5 percent in January from 9.2 percent in December 2022, according to a flash estimate published on Wednesday by Eurostat, the European Union's (EU) statistical bureau. (Photo by Stefan Zeitz/Xinhua)
A price board is seen at a gas station in Berlin, Germany, on Feb. 1, 2023. Annual inflation in the eurozone is projected to fall to 8.5 percent in January from 9.2 percent in December 2022, according to a flash estimate published on Wednesday by Eurostat, the European Union's (EU) statistical bureau. (Photo by Stefan Zeitz/Xinhua)
People walk past a store in Berlin, Germany, on Feb. 1, 2023. Annual inflation in the eurozone is projected to fall to 8.5 percent in January from 9.2 percent in December 2022, according to a flash estimate published on Wednesday by Eurostat, the European Union's (EU) statistical bureau. (Photo by Stefan Zeitz/Xinhua)
People visit a shopping mall in Berlin, Germany, on Feb. 1, 2023. Annual inflation in the eurozone is projected to fall to 8.5 percent in January from 9.2 percent in December 2022, according to a flash estimate published on Wednesday by Eurostat, the European Union's (EU) statistical bureau. (Photo by Stefan Zeitz/Xinhua)
A woman walks past a store with discount signs in Berlin, Germany, on Feb. 1, 2023. Annual inflation in the eurozone is projected to fall to 8.5 percent in January from 9.2 percent in December 2022, according to a flash estimate published on Wednesday by Eurostat, the European Union's (EU) statistical bureau. (Photo by Stefan Zeitz/Xinhua)
Related articles
Insider Q&A: CIA's chief technologist's cautious embrace of generative AI
Knowledge advantage can save lives, win wars and avert disaster. At the Central Intelligence Agency,2024-05-21Rangers aware of Presidents' Trophy curse as they face Carolina Hurricanes in second round
The New York Rangers are well aware about the difficulties Presidents’ Trophy winners have had in ad2024-05-21Swiatek saves 3 match points to beat Sabalenka in Madrid Open final
MADRID (AP) — Iga Swiatek avenged her loss in last year’s final to Aryna Sabalenka and won the Madri2024-05-211920s Chicago penthouse hits the market for $4.3m
A 1920s Chicago penthouse with one-of-a-kind features that was once owned by a Hollywood starlet has2024-05-21Six killed in a 'foiled coup' in Congo, the army says
KINSHASA, Congo (AP) — Six people were killed and dozens arrested following attacks on the residence2024-05-21Defending Stanley Cup champion Knights and top
DALLAS (AP) — There is one more game to go between the defending Stanley Cup champion Vegas Golden K2024-05-21
atest comment