Brussels, Feb. 23, (dpa-AFX/GNA) - Eurozone inflation slowed less than estimated in January and remained at an elevated level, final data from Eurostat showed on Thursday.
The harmonized index of consumer prices gained 8.6% on a yearly basis in January, following December’s 9.2% increase. A similar lower rate was last seen in June 2022.
Although inflation slowed for the third consecutive month in January, the rate remained elevated. Moreover, annual inflation for January was upwardly revised from the initial estimate of 8.5%. Core inflation that excludes energy, food, alcohol and tobacco, rose slightly to 5.3% from 5.2%.
The January core rate was revised up from 5.2%. At the February rate-setting meeting, the European Central Bank raised its benchmark rate by 50 basis points after a 75 basis point hike in December. The bank signaled another rate increase in March in order to bring inflation back to its 2% medium-term target.
On a monthly basis, the HICP dropped 0.2% in January compared to the flash estimate of -0.4%. Final data showed that there were upward revisions to food, alcohol and tobacco prices and energy prices.
Energy prices grew 18.9% and food, alcohol and tobacco prices gained 14.1%. Non-energy industrial goods posted an annual increase of 6.7% and cost of services climbed 4.4%.
GNA