Eurozone | Inflation increased in January but will fall

Summary

Headline inflation increased by 0.2pp to 0.4% YoY in January, as expected, due to the moderation in the fall in energy prices, but also to the increase in core inflation (+0.1pp) to 1%, surprising somewhat to the upside. However, recent developments in oil prices suggests that inflation will moderate in February and could record slightly negative rates from March onwards.

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