EU inflation forces ECB to maintain “higher for longer” narrative
Euro area CPI increased by 8.6% YoY, according to the final data from Eurostat. The rate of growth of price level in the bloc declined compared to 9.2% in December. Preliminary estimate showed that consumer prices rose by 8.5%.
MoM change in aggregate consumer price level was negative and amounted to 0.2%.
Consumer prices, excluding volatile goods and services such as energy, food and alcohol (key inflation measure for the ECB) rose 5.3% YoY last month after rising 5.2% a month earlier.
Food, alcohol and tobacco prices rose 14.1% after rising 13.8% in December. Growth in energy prices slowed to 18.9% after rising 25.5% a month earlier. Services inflation amounted to 4.4% YoY.
Across the EU-27, prices rose 10.0% year-on-year in January after rising 10.4% a month earlier. Compared to the previous month, prices in the EU increased by 0.2%.
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