Highlights
The provisional January CPI was unrevised in the final data. Hence, consumer prices fell 0.6 percent from December to nudge the 12-month inflation rate a tick lower at 0.8 percent.

By contrast, the HICP was revised slightly firmer to show a 0.6 percent fall on the month (previously 0.7 percent) and a 0.8 percent rise on the year (0.7 percent).

As expected, price declines at the start of the year were determined largely by seasonal factors. Hence, charges for package holidays slumped nearly 19 percent on the month while clothes and shoe prices were down 4.5 percent. Meantime, upward pressure came mainly from the food sector which saw vegetables costs up 12.5 percent from January.

Headline inflation should continue to accelerate for a few months more yet as base effects remain significantly positive. However, with domestic demand still struggling and unlikely to be helped by the recent renewed volatility in equity markets, and capacity utilisation historically low, underlying trends should stay subdued.

Today's report slightly increases the likelihood of a small upward revision to the full Eurozone HICP in January but policy implications are minimal.

2010 Release Schedule

Released On: 1/14 1/27 2/9 2/26 3/10 3/29 4/13 4/28 5/11 5/27 6/10 6/28 7/9 7/28 8/10 Released For: Dec Jan Jan Feb Feb Mar Mar Apr Apr May May Jun Jun Jul Jul   Released On: 8/27 9/9 9/28 10/12 10/27 11/9 11/26 Released For: Aug Aug Sep Sep Oct Oct Nov