New European Unions statistics show that prices in the eurozone region rose by 1 per cent in January on a year-on-year basis, up only slightly on the 0.9 per cent inflation rate measured in December.
Further indications that prices are not yet responding to the delicate recovery of the region’s economy, was the -0.8 per cent month-on-month inflation figure. Prices of clothing, culture, hotels, household equipment and communications all fell over the first month of 2010.
However, energy prices were up strongly – by 4.0 per cent on an annual basis and 2.1 per cent on month-on-month terms.
In terms of core inflation, which does not include energy or unprocessed food prices, as these are extremely volatile, prices rose by 0.9 per cent year-on-year and dropped 1.3 per cent month-on-month.
Analysts expect the inflation rate for the eurozone to remain around the 1 per cent mark for the entirety of this year.
The foreign exchange rate for the single currency against the US dollar edged up slightly at points but remains at $1.3560, which is still close to the nine-month low of $1.3443 that it hit a week ago.
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