Eurozone Preliminary CPI rises 1.4% YoY in Jan, meets estimates

According to Eurostat’s flash reading of Eurozone CPI report, the annual reading came in at +1.4% in October, meeting expectations of +1.4% and +1.3% previous.

Meanwhile, the core figures dropped to 1.1% in the reported month when compared to 1.2% expectations and 1.3% previous.

Key Details (via Eurostat):

“Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in January (2.2%, compared with 2.0% in December), followed by energy (1.8%, compared with 0.2% in December), services (1.5%, compared with 1.8% in December) and non-energy industrial goods (0.5%, stable compared with December).”

The Eurozone inflation report comes a day after the German Prelim CPI data was released, which showed that the German consumer price inflation accelerated by 1.6% in January and remained well below the European Central Bank’s (ECB) rate target of just under 2 percent for the Eurozone as a whole.

FX Implications:

On the data release, the shared currency barely moved, as EUR/USD kept its range near-around 1.1025 region. Focus remains on intensifying coronavirus fears and the US macro data.