London, Wednesday, 2 February 2022 -
The Euro Area's annual inflation rate increased to 5.1 percent in January 2022, up from 5% in December, against market expectations that it would fall to 4.4 percent.
Preliminary estimates suggest that energy continues to have the highest price increase (28.6% vs. 25.9% in December), followed by food, alcohol, and tobacco (3.6 percent vs. 3.2 percent), services (2.4 percent vs. 2.9 percent), and non-energy industrial products (2.3 percent vs. 2.9 percent).
However, core inflation, which excludes costs for energy, food, alcohol, and cigarettes, fell to 2.3 percent, a three-month low.
The inflation rate is still significantly above the ECB's objective of 2%, owing to a power crisis in Europe that has driven up the cost of natural gas, coal, and electricity, despite improving demand and pandemic-related supply constraints.
(Edited by: The Decision Maker)