A closer examination of the main components contributing to the overall inflation rate reveals significant insights. On the energy front, prices continue to show a negative inflation rate, albeit with a slight improvement. Energy prices are expected to be at minus 6.3 per cent in January, a marginal recovery from minus 6.7 per cent in December.

The Euro area’s inflation rate is projected to decrease slightly to 2.8 per cent in January 2024, from 2.9 per cent the previous month.
There’s a slight improvement in energy prices, expected to be at minus 6.3 per cent compared to minus 6.7 per cent in December.
Inflation for non-energy industrial goods is set to decrease to 2 per cent from 2.5 per cent.

Notably, the inflation for non-energy industrial goods is projected to decrease to 2 per cent in January from 2.5 per cent in December, as per Eurostat.

Fibre2Fashion News Desk (DP)