Inflation in Europe declined in January 2023 based on the latest estimates from the Statistical Office of the European Union (Eurostat).

The Euro Area annual inflation rate for January 2023 went down to 8.6 per cent from the 9.2 per cent reported in the previous month of December 2022. The prior year rate was 5.1 per cent.

Inflation in the European Union was 10.0 per cent annually in January 2023, down from 10.4 per cent in December 2022. The rate for the prior year was 5.6 per cent.

ANNUAL INFLATION FELL IN 18 MEMBER STATES

Food, alcohol, and tobacco prices went up by 2.94 per cent, which made the largest contribution to the annual inflation rate in the Euro Area in January, followed by energy (+2.17%), services (+1.80%) and non-energy industrial goods (+1.73%).

The lowest expected annual rates were observed in Luxembourg (5.8%), Spain (5.9%), Cyprus and Malta (both 6.8%). The highest annual rates were recorded in Hungary (26.2%), Latvia (21.4%) and Czechia at (19.1%).

Compared with December 2022, annual inflation fell in 18 member states and rose in nine.