Economists expected inflation to rise to 10% based on the results of January.
Germany, which is the largest economy in the Eurozone, announced a slowdown in inflation in January compared to the previous month.
According to the Financial Times with reference to the Federal Statistical Agency of Germany, the inflation rate decreased to 9.2% in January from 9.6% in December.
According to the article, economists expected an increase in inflation to 10% based on the results of January.
Germany accounts for about a quarter of all price data used to calculate inflation in the Eurozone.
Any change in the readings from January could change perceptions of how quickly price pressures are easing in the region and change expectations about when the European Central Bank will stop raising interest rates.
Determining the level of German inflation is complicated by the role of government subsidies designed to soften the impact of rising energy costs on households. In December, the country paid the gas bills of most German households. It was a one-time payment, so in January, consumer bills for energy carriers increased again.
The Eurozone and the war in Ukraine
On August 1, 2022, the inflation rate in the Eurozone reached a record level.
It was predicted that the index of consumer price growth in the Eurozone in August 2022 in relation to August 2021 could be a record 9.1%.
On September 16, 2022, inflation in the Eurozone soared to an all-time high.
In October, the level of inflation in the Eurozone reached a historical record of 10.6%.
As of November 30, 2022, for the first time in a year and a half, inflation in the Eurozone slowed down to 10%.
As of December 6, 2022, inflation in the Eurozone approached its peak.
As of January 24, 2023, the Eurozone has returned to growth.
On January 30, 2023, it became known that the largest economy of the Eurozone shrank by 0.2% in the last quarter of 2022 compared to the third quarter of the year.
As of February 1, 2023, inflation in Europe began to decline significantly.
