The inflation rate in the Eurozone accelerated during the month of January, recording its highest level since July, which was stronger than market expectations.
Data released by the European Statistics Office on Monday showed that the preliminary readings of the annual Consumer Price Index (CPI) in the Eurozone grew by 2.5% in January, while markets expected price stability and inflation to grow at the same rate as the index did in December, which recorded 2.4%.
As for core inflation, the preliminary reading showed that the annual Consumer Price Index, excluding food, energy, alcohol, and tobacco prices, grew by 2.7% in January, which was lower than market expectations of 2.6%. The core inflation rate was 2.9% for December.
The Consumer Price Index measures the change in prices of goods consumed by individuals, and consumer prices are a significant way to determine changes in purchasing trends and inflation rates in the Eurozone, which have strong implications for the European Central Bank's monetary policy decisions.
