MNI BRIEF: Eurozone Headline Inflation Higher On Energy Costs

Eurozone headline inflation rose in January, pushed higher by a jump in energy costs, Eurostat data showed on Monday.

Prices rose 2.5% in the year to January, 0.1 percentage point faster than in December, but core inflation was unchanged at 2.7%. However, month-on-month readings were sharply lower, suggesting sequential falls in coming months. Headline prices fell 0.3% m/m, while core prices were down 1.0% m/m. 

Services inflation, closely watched by the ECB, was lower at 3.9% y/y, down 0.2% m/m, while energy prices rose 1.8% y/y, up from 0.1% in December. On the month, energy costs jumped 2.9%. (See MNI ECB WATCH: ECB Cuts 25BP, Says Rates Still Restrictive )