FRANKFURT, Feb. 4 (Xinhua) -- Inflation in the euro area is seen at 1.7 percent in January, down from 2 percent in December, according to a flash estimate released on Wednesday by Eurostat, the statistical office of the European Union.
Among the main components, energy prices emerged as the main driver of the decrease, falling 4.1 percent year-on-year in January. By contrast, the prices of other main components rose, services recording the strongest increase at an annual rate of 3.2 percent. Prices of food, alcohol and tobacco are expected to rise 2.7 percent year-on-year, up from 2.5 percent a month earlier, while prices of non-energy industrial goods also saw a modest increase of 0.4 percent year-on-year.
The decline in inflation was broad-based across nearly all of the eurozone's 21 member states with the exception of Germany, Slovakia and Cyprus. Luxembourg, Belgium, Spain and Finland saw particularly sharp declines in inflation.
Among the bloc's largest economies, Germany's annual inflation rate is expected to rise to 2.1 percent in January from 2 percent in December. In Spain, inflation is seen at 2.5 percent, below December's 3 percent. France's inflation is estimated at 0.4 percent, while Italy's rate is forecast to edge down to 1 percent from 1.2 percent in December, Eurostat data showed.
Inflation in January marked its lowest level since May 2021. More broadly, inflation in the euro area has remained at or below 2.2 percent since March 2025.
In earlier statements last year, the European Central Bank said it was in a comfortable position as inflation expectations were staying close to its 2 percent target. ■
