The European Statistics Office (Eurostat) has released the leading inflation data for the Eurozone for the January period.
The consumer price index (CPI) in the Euro Zone increased by 8.5 percent year-on-year in January. The median assumption of economists surveyed by Bloomberg was 8.9 percent. Consumer prices in the Eurozone decreased by 0.4 monthly in January.
This week’s data showed that the Eurozone economy will escape the prospect of stagnation, as the manufacturing industry rebounds and unemployment remains at a record low in December.
Uncertainties regarding inflation had increased mainly due to annual adjustments. The picture got even more blurred when statisticians in Germany said they couldn’t deliver the January numbers as scheduled this week due to technical problems. Instead, Eurostat made its own claim for Germany, Europe’s largest economy. The aggregated information showed that Eurostat recorded a sharp slowdown for the German economy.
Inflation data is expected to encourage pigeon officials at the ECB to lower the rate hike rate, analysts said. However, it was stated that more hawkish members were concerned about rising prices and focused on core inflation data.