Eurozone Jan inflation ticks up to 2.4% on energy price spike

(Sharecast News) - Eurozone ticked up to 2.5% in January as energy prices rose, according to a flash estimate from Eurostat, the European Union's statistical office. The figure compared with 2.4% in December. Energy inflation was 1.8% versus 0.1% in the previous month.

Services is expected to have the highest annual rate in January at 3.9%, compared with 4% in December, followed by food, alcohol & tobacco (2.3% from 2.6%).

"Stickier components still show no convincing signs of disinflation: core inflation was flat at 2.7%. The main positive news came from food inflation, slowing down for the third consecutive month, among the lowest values of the past three years; the seasonally adjusted monthly path suggests momentum will remain weak in the foreseeable future," said analysts at Oxford economics."

"All in all, today's figure does not bring much comfort to ECB's dovish members, as most interest-rate sensitive components remain elevated and pose an upside risk to our inflation forecast."