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Euro area inflation drops to 2.8% in January 2024

24 Feb '24

2 min read

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Euro area's inflation fell to 2.8 per cent in January 2024 from 2.9 per cent in December 2023, a significant decrease from the previous year's 8.6 per cent, as per Eurostat.
The EU's rate also dropped to 3.1 per cent from 3.4 per cent.
Denmark and Italy had the lowest rates at 0.9 per cent, while Romania recorded the highest at 7.3 per cent.

In January 2024, the euro area witnessed a decline in its annual inflation rate to 2.8 per cent from 2.9 per cent in December, marking a significant drop from the 8.6 per cent rate recorded a year earlier, according to Eurostat, the statistical office of the European Union (EU). Similarly, the EU saw its annual inflation rate reduce to 3.1 per cent in January 2024, down from 3.4 per cent in December and a sharp fall from 10.0 per cent a year prior.

Among EU member states, Denmark and Italy reported the lowest annual inflation rates, both at 0.9 per cent, followed closely by Latvia, Lithuania, and Finland, each with a rate of 1.1 per cent. On the higher end of the spectrum, Romania experienced the highest annual inflation rate at 7.3 per cent, with Estonia and Croatia following at 5 per cent and 4.8 per cent, respectively. The data indicates a varied inflation landscape within the EU, with annual inflation rates decreasing in fifteen member states, holding steady in one, and increasing in eleven compared to the previous month.

Industrial goods added 0.53 percentage points to the annual euro area inflation rate in January. Energy prices, on the other hand, had a deflationary effect, subtracting 0.62 percentage points from the overall inflation rate, as per Eurostat.

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