In January 2024, the euro area experienced an annual inflation rate of 2.8%, slightly down from December’s 2.9%. This contrasts with the previous year’s 8.6% rate. Similarly, the European Union saw its annual inflation rate decline to 3.1% in January 2024, compared to 3.4% in December. In January of the prior year, this rate stood at 10.0%. These statistics are provided by Eurostat, the statistical office of the European Union.
Among the member states, the Czech Republic reported an annual inflation rate of 2,7%, while its neighbor, Slovakia, saw a rate of 4,4%. Additionally, Denmark and Italy reported the lowest annual rates, both at 0.9%, while Latvia, Lithuania, and Finland followed closely with rates of 1.1%. Conversely, Romania reported the highest annual rate at 7.3%, with Estonia at 5.0% and Croatia at 4.8%. Comparing December figures, annual inflation decreased in fifteen member states, remained stable in one, and increased in eleven.
Breaking down the components contributing to the euro area’s annual inflation rate in January, services had the highest contribution at +1.73 percentage points, followed by food, alcohol, and tobacco at +1.13 pp, non-energy industrial goods at +0.53 pp, and energy at -0.62 pp.
