Eurozone inflation rises to six-month high in January

The eurozone’s annual inflation rate was 2.5 percent in January 2025, the highest since July 2024, compared with 2.4 percent in December 2024. A year earlier, the rate was 2.8 percent.

The European Union’s annual inflation rate was 2.8 percent in January 2025, compared with 2.7 percent in December 2024. A year earlier, the rate was 3.1 percent.

Inflation was mainly driven by energy costs, with the eurozone rising by 1.9 percent, compared with 0.1 percent in December. Meanwhile, non-energy industrial goods inflation remained at 0.5 percent, while services inflation was 3.9 percent, down from 4.0 percent.

In January 2025, services contributed the most to the annual inflation rate in the euro area, with 1.77 percentage points, followed by food, alcohol and tobacco (0.45 percentage points), energy (0.18 percentage points) and non-energy industrial products (0.12 percentage points).

In one month, consumer prices fell by 0.3 percent in January, after a monthly increase of 0.4 percent in December.