Euro area prices: red lights

Genevieve Signoret

Prices

Euro area’s annual inflation rate according to Eurostat’s flash report slid deeper into negative territory in January to –0.6% from December’s –0.2%. Consumer prices were pushed down by the plummeting energy prices (–8.9% y/y). Services prices rose 1.0%.

Euro area’s annual inflation rate according to Eurostat’s flash report slid deeper into negative territory in January

Core inflation slowed down in Japan. Japan’s annual inflation for the underlying index, which excludes food and energy, slowed down to 2.5% from 2.7% in November, while the headline number stayed stable at 2.4%. Excluding the effect of last April’s VAT hike, Japan’s core inflation rate slipped for the fifth consecutive month, to 0.5% in December from 0.7% the month before.

Core inflation slowed down in Japan