Eurozone Preliminary CPI spikes to 0.9% YoY in January vs. 0.5% expected

According to Eurostat’s flash reading of Eurozone CPI report, the annual reading came in at 0.9% in the first month of 2021, beating expectations of 0.5% and -0.3% previous.

The core figures came in at 1.4% in January when compared to 0.9% expectations and 0.2% recorded in December.

Key details (via Reuters)

“Eurozone consumer inflation rebounded by much more than expected in January, pushed up by a jump in prices in Germany and the Netherlands, and despite the continued downward pull from cheaper energy.”

“Volatile energy prices rose 3.8% month-on-month in January, Eurostat estimated, but were still 4.1% lower than a year earlier, while also volatile unprocessed food prices went up 1.1% on the month and 1.9% year-on-year.”

Separately, the bloc’s Producer Price Index (PPI) dropped by 1.1% YoY in December vs. -1.2% expected and -1.9% last. On a monthly basis, the PPI arrived at 0.8% in the final month of 2020 vs. 0.7% expected and 0.4% prior.

EUR/USD reaction

EUR/USD paid a little heed to the upbeat Eurozone inflation numbers, as it trades currently at 1.2026, down 0.15% on the day. Attention turns to the US economic data and stimulus updates.