Euro zone inflation rises to hotter-than-expected 2.5% in January

Eurozone inflation rose to 2.5% in January, surpassing expectations due to a sharp increase in energy costs, according to Eurostat data.

Core inflation, excluding food, energy, alcohol, and tobacco, held steady at 2.7%, while services inflation slightly decreased to 3.9%.

Energy costs surged by 1.8%, up from a minimal rise in December.

Despite the rise in inflation, the European Central Bank (ECB) remains on track to meet its 2% medium-term target by the summer, with further interest rate cuts anticipated, CNBC has reported.

However, experts warn that potential tariffs could add inflationary pressure.

read more: https://www.cnbc.com/2025/02/03/euro-...

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