Euro area annual inflation in January exceeded market forecast

ANKARA

The eurozone's annual consumer inflation rate accelerated to a 6-month high of 2.5% in January, bucking market forecasts, according to flash estimates released on Monday.

Headline inflation rose from 2.4% in December, while the market had estimated the reading to remain constant, Eurostat data showed.

Energy prices increased 1.8% year-on-year in January, the fastest pace since April 2023.

Core inflation, which excludes volatile food and energy prices, was unchanged for the fifth straight month at 2.7% in January, also exceeding the market forecast of 2.6%.

Services continued to have the highest annual inflation rate last month at 3.9%, slightly easing from December's 4%.

On a monthly basis, the eurozone consumer price index fell 0.3%, reversing the 0.4% rise in December.