Eurozone Annual Inflation Rate Falls to 1.7% in January, Meeting Market Expectations

0 min read Updated on 04 Feb 2026, 03:33 PM

Reviewed by

Shraddha JScanX News Team

Overview

Eurozone annual inflation declined to 1.7% in January from 1.9% in the previous month, exactly matching economist expectations. The decrease reflects continued moderation in price pressures across the euro area, with the CPI reading coming in line with market forecasts.

*this image is generated using AI for illustrative purposes only.

The Eurozone's annual inflation rate declined in January, reflecting continued moderation in price pressures across the euro area. The latest Consumer Price Index (CPI) data shows inflation cooling from previous levels while meeting market expectations.

January Inflation Data

The Eurozone's year-over-year CPI reading for January came in at 1.7%, representing a decrease from the previous month's figure of 1.9%. This decline indicates a continued easing of inflationary pressures within the currency bloc.

Metric	January Actual	Previous Month	Market Estimate
Eurozone CPI (YoY)	1.7%	1.9%	1.7%

Market Expectations Met

The January inflation reading aligned exactly with economist forecasts, which had predicted a 1.7% annual rate. This accuracy in market predictions suggests that the disinflationary trend in the Eurozone has been proceeding largely as anticipated by financial analysts and economists.

Inflation Trend Analysis

The decline from 1.9% to 1.7% represents a continuation of the moderating inflation environment in the Eurozone. This 0.20 percentage point decrease indicates that price pressures have continued to ease, bringing the inflation rate further below the European Central Bank's target levels.

Eurozone Consumer Price Index Declines 0.5% in January, Matching Forecasts

1 min read Updated on 04 Feb 2026, 03:33 PM

Reviewed by

Anirudha BScanX News Team

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Overview

Eurozone CPI declined 0.5% month-on-month in January, exactly matching economist estimates and reversing from 0.2% growth in the previous month. The data indicates deflationary pressure in the region during January, representing a significant shift from the modest inflationary trend observed in the preceding period.

*this image is generated using AI for illustrative purposes only.

The Eurozone consumer price index experienced a notable decline in January, falling by 0.5% on a month-on-month basis according to official economic data. This decrease aligned precisely with economist forecasts and marked a significant reversal from inflationary trends observed in recent periods.

January CPI Performance

The January CPI data revealed deflationary pressure across the Eurozone, with the month-on-month decline reaching the anticipated 0.5% threshold. This figure represents a substantial shift in price dynamics compared to the previous month's performance.

Metric	January Actual	Previous Month	Economist Estimate
CPI (MOM)	-0.5%	0.2%	-0.5%

Economic Context

The transition from a 0.2% increase in the previous month to a 0.5% decline in January demonstrates the volatility in Eurozone price movements. The accuracy of economist predictions, which correctly anticipated the 0.5% decrease, suggests that market analysts had identified factors likely to contribute to deflationary pressure during the January period.

The month-on-month CPI serves as a key indicator of short-term price trends across the Eurozone, providing insights into immediate economic conditions and consumer price dynamics. The January decline represents a measurable shift in the region's inflation trajectory, moving from positive growth to negative territory within a single month.