Eurozone final CPI meets estimates with 0.2% MoM in January, EUR/USD tests lows

Eurozone inflation arrives at 0.9% YoY in January.
Monthly CPI in the bloc rises by 0.2% in January.
EUR/USD holds the lower ground below 1.2150 on the data release.

Dhwani Mehta FXStreet

According to Eurostat’s final reading of the Eurozone CPI report for January, the consumer prices came in at 0.9% on a yearly basis, meeting the flash estimate of 0.9% and 0.9% expectations. While the core figures rose by 1.4% versus +1.4% previous and +1.4% expectations.

On a monthly basis, the bloc’s CPI figure for December accelerated by 0.2% versus 0.2% expectations and 0.3% previous while the core CPI numbers arrived at -0.5% versus -0.5% expected and -0.5% last.

Key details (via Eurostat):

“The lowest annual rates were registered in Greece (-2.4%), Slovenia (-0.9%) and Cyprus (-0.8%). The highest annual rates were recorded in Poland (3.6%), Hungary (2.9%) and Czechia (2.2%). Compared with December, annual inflation fell in three Member States, remained stable in six and rose in eighteen.“

“In January, the highest contribution to the annual euro area inflation rate came from services (+0.65 percentage points, pp), followed by non-energy industrial goods (+0.37 pp), food, alcohol & tobacco (+0.30 pp) and energy (-0.41 pp).”

FX implications:

EUR/USD holds the lower ground around 1.2150 on the Eurozone inflation release. The spot erased entire gains to now shed 0.05% on a daily basis.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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