Inflation in the eurozone slowed to 1.7 percent in January, according to a preliminary estimate from the European statistics agency Eurostat. This marks a notable decrease from December, when price growth stood at 2 percent.
The current figure puts inflation below the European Central Bank’s formal target of approximately 2 percent. Analysts attribute much of the January decline to a reduction in energy costs. The ECB also monitors core inflation, which excludes volatile items such as energy, food, alcohol, and tobacco. This measure fell slightly to 2.2 percent in January from 2.3 percent the previous month.
In the Netherlands, price increases remained higher than the eurozone average at 2.2 percent. However, this still represented a significant drop from the 2.7 percent recorded in December under the European harmonised measurement method.
The ECB is scheduled to announce its latest interest rate decision this Thursday. It is widely expected that the central bank will keep borrowing costs unchanged for the fifth consecutive time
