The Eurozone's annual inflation rate climbed to 2.5 per cent in January, up from 2.4 per cent in December 2024, according to a flash estimate released by Eurostat on Monday.

Economists polled by Reuters had expected the January inflation print to come in at 2.4%, unchanged from December.

The Eurozone Harmonized Index of Consumer Prices (HICP) advanced at an annual rate of 2.5% in January after increasing 2.4% in December, the official data released by Eurostat showed Monday. The market consensus was for a 2.5% growth in the reported period.

The Labor Department released the consumer price index for January which showed that inflation remained elevated in as the Federal Reserve considers a continued pause on rate cuts.

Euro zone inflation accelerated slightly last month but remained on an anticipated course that could allow the European Central Bank to cut interest rates further, possibly as soon as March. The ECB lowered borrowing costs for the fourth straight time last month and hinted at even more policy easing since inflation could be back at its 2% goal by late summer,

The 0.5% price increase from December to January marked the worst month-over-month inflation since August 2023. Egg Prices Soar 15%. The price of eggs rose 15.2%

Inflation picked up more than expected in January, returning to a 3% rate for the first time in seven months. The continued stalled progress on taming price growth will keep central bank officials from lowering interest rates and could even raise the specter of rate hikes.

A key government report showed inflation in the United States rose 0.5% in January, much more than expected. The January Consumer Price Index for January was released on Wednesday morning. The predictions were that inflation would come in at 0.