Euro Area Inflation Rises to 2.5% in January 2025 (02.03.2025)

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.

Energy Prices Drive Inflation Increase

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.

Mixed Trends in Other Sectors

• Non-Energy Industrial Goods: Inflation remained steady at 0.5%, showing no change from December.
• Services Sector: Price growth slowed slightly, dropping to 3.9% from 4.0%.
• Food, Alcohol, and Tobacco: Inflation eased to 2.3%, down from 2.6%.

Core Inflation Holds Steady

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