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Eurozone Inflation Slows to 1.7% in January, Reinforcing ECB’s Hold on Rates
Eurostat’s final figures show that consumer‑price growth across the 21‑member euro area fell to 1.7 % year‑on‑year in January, the lowest level since September 2024. The monthly CPI also slipped 0.6 %, beating both the flash estimate and economists’ expectations. Core inflation eased to 2.1 %, suggesting the European Central Bank will likely keep its policy rates unchanged for the remainder of 2026.
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Eurozone Inflation Decelerates in January 2026
According to Eurostat’s definitive data released on 25 February 2026, the annual increase in consumer prices across the 21 euro‑area countries slowed to 1.7 % in January. This marks the slowest pace since September 2024, down from 2 % recorded in December 2025.
On a month‑to‑month basis, prices fell by 0.6 %, contrary to the preliminary estimate of a 0.2 % rise and well above the 0.5 % decline predicted by Reuters‑surveyed economists.
The “core” inflation rate, which strips out volatile food and energy components, also eased, reaching 2.1 % in January versus the earlier flash estimate of 2.2 %.
These readings are expected to reinforce the European Central Bank’s decision to keep its key policy rates unchanged for the rest of the year. At its February meeting, the ECB left rates steady, emphasizing that inflation is converging toward its 2 % target and that a strong euro should not compel a premature policy shift.
Analysts note that while the slowdown eases pressure on monetary policy, the ECB will continue monitoring price developments closely, especially given lingering energy price volatility and external economic uncertainties.
- Related article: USA – PCE inflation climbs to 2.9 % in December.
- Related article: Eurozone CPI drops 0.8 % in January 2026.