Euro area and EU inflation rates decrease slightly, according to Eurostat data. Annual inflation rates have decreased in both the euro area and the European Union (EU) in January 2023.
The annual inflation rate in the euro area fell to 8.6% in January, down from 9.2% in December. In the EU, the rate decreased from 10.4% in December to 10.0% in January.
Compared to a year earlier, inflation has increased substantially, with the euro area annual inflation rate in January 2022 being 5.1% and the EU rate being 5.6%. The figures indicate that inflation remains a concern in the region, but the slight decrease in January is a positive development.
In January, the food, alcohol, and tobacco category contributed the most to the annual inflation rate in the euro area, accounting for 2.94 percentage points. Energy was the second biggest contributor, accounting for 2.17 percentage points, followed by services at 1.80 percentage points and non-energy industrial goods at 1.73 percentage points.
Overall, the decrease in inflation rates in the euro area and the EU in January is a positive sign, but with inflation still above the European Central Bank’s target of below 2%, it remains a concern for policymakers in the region.