Eurozone inflation confirmed at 16-month low
By Benjamin Chiou
Date: Wednesday 25 Feb 2026
(Sharecast News) - Eurozone inflation officially fell to a 16-month low in January, final estimates from Eurostat confirmed on Wednesday, as a bigger drop in energy prices combined with slowdowns in processed food and services inflation.
The annual change in the eurozone consumer price index was 1.7% last month, down from 2.0% in December and in line with the preliminary estimate released three weeks ago.
This was the first print below the European Central Bank's 2.0% target since May 2025, and well below the 2.5% rate registered 12 months earlier.
Softening inflation "could allow the European Central Bank to act if trade tensions flare and threaten economies", according to Ipek Ozkardeskaya, senior analyst at Swissquote.
Energy prices across the single-currency region fell by 4.0% year-on-year in January, following a 1.9% decline in December. Food, alcohol and tobacco inflation picked up to 2.6% from 2.5%, though eased for processed food, alcohol and tobacco to 2.0% from 2.1%.
Excluding the more volatile energy, food, alcohol and tobacco items, core inflation slowed to 2.2% from 2.3%, as services inflation fell to 3.2% from 3.4%.
The lowest rates of inflation were registered in France (0.4%) and Italy (1.0%), while the highest rates were recorded in Slovakia (4.3%) and Estonia (3.8%).
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