• The eurozone inflation picture remains unchanged from last week. We still think that risks to the January flash estimate (reported at 1.0% yoy) are tilted towards an upward revision.
    • Today, Italy’s January preliminary inflation rate was reported at 1.3% yoy (vs. the previous 1.0%), 0.1pp lower than our own forecast. Weakness was visible particularly on core and food prices. We have adjusted our FOI projection accordingly.
    • Our preliminary estimate for February sees the yearly inflation rate in the eurozone either stabilizing or easing slightly vs. January.