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EZ Jan Inflation Smashes Expectations To Hit New High

EUROZONE DATA
MNI (London)
  • Eurozone inflation blew through expectations in January, rising by 0.3% over December, taking the annual rate to a new euro-era high of stretching to an annual rate of 5.1%, according to data released by Eurostat on Wednesday.
  • Analysts had expected a retreat to 4.5% from 5.0% in December.
  • Energy prices continued to distort the inflation reading, rising by 6.0% between December and January for a 28.6% surge over the same period of last year.
  • Excluding food, energy, alcohol and tobacco, core inflation declined by 0.8% in January, taking the annual rate down to 2.3%, the smallest increase since October, from 2.6% in December.
  • Prices for non-energy industrial goods declined to an annual rate of 2.3% from 2.9% in December, while service sector inflation was unchanged at 2.4%.

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