BRUSSELS – Euro zone inflation grew an annual 1.4% in January, picking up from the previous month as energy prices surged, the European Union statistics office said on Friday, confirming its earlier estimates.
Eurostat also confirmed that core inflation, which excludes volatile food and energy, slowed in December. That will complicate the European Central Bank’s plans to meet its target of headline inflation close to 2% over the medium term.
Prices in the 19-country region rose 1.4% in January year-on-year, for their third consecutive monthly acceleration, in line with market expectations. In December, headline inflation was at 1.3%.
Core inflation slowed to 1.3% in January from 1.4% in December, Eurostat said confirming its previous estimates released on January 31.
The statistics office also left unchanged at 1.1% its estimate for a narrower measure of core inflation, which strips out energy, food, alcohol and tobacco, confirming the indicator slowed from 1.3% in December.
Month-on-month, the euro zone recorded a 1.0% deflation, Eurostat said.
On the year, the headline reading picked up because of a sharp rise in energy prices, which increased 1.9% from 0.2% in December. Inflation was at 2.1% for food, alcohol and tobacco, accelerating from 2.0% in December.
It slowed in services, the largest part of the euro zone economy, to 1.5% in January from 1.8% in December.
(Content and photos syndicated via Reuters)
