Brussels – Inflation rising in the eurozone in January. According to preliminary data from Eurostat, the cost of living index is expected to stand at 2.5 per cent, up from December (2.4 per cent). This increase is mainly driven by higher energy prices (1.8 per cent, up from 0.1 per cent in December), nullifying contractions in “services” (3.9 per cent, compared with 4 per cent in December) and “food, alcohol, and tobacco” (2.3 per cent, compared with 2.6 per cent in December).
Among the major euro area economies, inflation is expected to be unchanged in Germany and France (2.8 per cent and 1.8 per cent, respectively). In contrast, between December 2024 and January 2025, Italy is expected to go higher than average (+0.3 percentage points to 1.7 per cent).
Eurostat’s preliminary inflation data seem to confirm the soundness of the European Central Bank’s fears, which sees the energy factor as one of the possible obstacles to growth and competitiveness. The latest economic bulletin warned about the risks of higher gas prices and the fallout on the energy bill in terms of consumption and new inflationary spirals. The European Statistical Office will publish consolidated data on February 24, and only then will the picture be clear and definitive. Still, it seems difficult that such a marked rise in the “energy” item can be massively corrected downward.
English version by the Translation Service of Withub
