Eurozone inflation picks up in January

Inflation in the Eurozone picked up in January, according to flash figures released by Eurostat.

Harmonised consumer prices were up an annual 0.4% compared with a 0.2% rise in December, bang in line with economists’ expectations.

Meanwhile, core inflation – excluding items such as energy and food – increased to 1% from 0.9% the previous month, compared with expectations for 0.9%.

Dennis de Jong, managing director at UFX.com, said: “The highest inflation reading for the Eurozone since November 2014 signals that confidence in the region remains robust in the face of global turmoil. Germany looks to be the driving force behind that, after posting strong results yesterday afternoon.

“This should go a long way to convince Mario Draghi and his ECB colleagues the stimulus programme is doing the trick. Yet the 2% target is a long way off, especially as oil prices remain low, China’s shares continue to flounder and the UK considers its membership of the EU.”