Eurozone flash CPI slowed from 1.9% yoy to 1.7% in January, in line with expectations. Underlying pressures also moderated slightly. Core CPI, which strips out energy, food, alcohol, and tobacco, edged down from 2.3% to 2.2% yoy.
By component, services inflation remained the largest contributor but slowed to 3.2% from 3.4%. Food, alcohol, and tobacco inflation picked up from 2.5% to 2.7%. Non-energy industrial goods inched higher from 0.3% to 0.4%. Energy prices was a major drag, with annual inflation falling sharply from -1.9% to -4.1%.
