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
Global markets remained cautious as escalating U.S.–Iran tensions and disruptions in the Strait of Hormuz continued to fuel inflation fears and energy market volatility.
Global markets leaned toward a cautiously optimistic tone as hopes for progress in U.S.–Iran ceasefire negotiations supported risk appetite and pressured the dollar.
Dollar Weakness Persists (11 – 15 May)Global markets moved through another volatile week as investors balanced resilient US economic data against ongoing geopolitical uncertainty in the Middle East. The US dollar weakened further, falling below 98 and reaching a ten-week low despite stronger labor market figures. At the same time, fragile ceasefire conditions between the United States and Iran continued to shape energy markets, while tensions around the Strait of Hormuz remained a key source of inflation risk and market caution.
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