According to data released on Friday, inflation in the eurozone eased in January, reaching the highest level in eight months. Union’s economic upturn faced increasing headwinds due to the US-China trade war and the approaching Brexit term.
The Eurostat report showed that on an annualized basis, the consumer price index (CPI) in the eurozone in January increased by 1.4% after gaining 1.6% in December. The reading matched projections.
The base consumer price index (CPI) in the eurozone, which does not include the prices of food, energy and tobacco, rose by 1.1%, against growth of 1.0% in December. This suggests that the decrease in core inflation could be caused by a decrease in oil prices in the last quarter of last year.
The ECB seeks to increase inflation, but it’s been stuck below 2% from 2013. Last week, the European Central Bank warned of increasing risks to the region’s economy. Some analysts predict that now the ECB will have to apply new measures to stimulate the economy this year, despite the completion of the bond redemption program in late 2018.
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