As reported by the Statistical Office of the European Union (Eurostat), the consumer price index (CPI) of the eurozone increased by 5.1% in January compared to 5.0% in December. This is a record level since Eurostat began collecting data.
The data were far higher than analysts’ earlier forecasts, which had expected a 4.4% increase in January, and more than double the 2% inflation target set by the European Central Bank (ECB).
The CPI increase in the eurozone was driven by rising food and energy prices. The core inflation index (excluding food and energy), the ECB’s main inflation indicator, rose by 2.3% in January YoY, compared with an increase of 2.6% YoY in December.