The annual inflation rate in the Eurozone increased to 2.5% in January 2025, up from 2.4% in December, according to a preliminary estimate.
This figure slightly surpassed market expectations of 2.4% and marked the highest inflation rate since July 2024.
A key factor behind this rise was the substantial increase in energy costs, which surged to 1.8% in January, compared to just 0.1% in December. This sharp rise in energy prices contributed notably to the overall inflation rate.
The core inflation rate, which excludes volatile food and energy prices, remained unchanged at 2.7% for the fifth month in a row. This figure was slightly above the market forecast of 2.6% but still represented the lowest level since early 2022. The latest inflation data will likely be observed by the European Central Bank (ECB) for future monetary policy decisions.
Source: Eurostat
The dollar index slipped below 97 as markets awaited delayed January jobs data, with weak retail sales and reports of China urging banks to cut US Treasury exposure adding pressure on the currency.
The dollar index stayed under pressure on Tuesday as fears of softer foreign demand for US assets, reports of Chinese banks cutting Treasury holdings, expectations of delayed US jobs and inflation data, and a firmer yen on intervention talk weighed on the greenback.
Precious Metals Rebound (09-13 February)Global markets began the week with the US dollar under pressure, falling under 97.5 for a second consecutive session. The greenback’s decline was fueled by a combination of improved risk sentiment and expectations of stable Federal Reserve policy with potential rate cuts on the horizon. Investors remained cautious as they awaited a backlog of delayed US economic data, including employment and inflation figures.
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