Inflation across the European Union (EU) declined to an annualized rate of 2.8% in January, inline with the expectations of economists.
Inflation in January eased from 2.9% in December, according to the European Union’s statistics agency.
Consumer prices had risen last December from a 2.4% inflation reading in November, largely due to the end of energy price support measures.
Core inflation that strips out volatile food and energy prices dropped to an annualized 3.3% in January from 3.4% in December.
However, economists polled by the Reuters news agency had expected a core inflation reading of 3.2% for January.
Declining energy prices and stagnant economic growth across Europe have exerted downward pressure on inflation in recent months.
Inflation throughout Europe has cooled significantly, dropping from a peak of 10.6% reached in October 2022.
The European Central Bank (ECB) targets inflation at an annualized rate of 2%.
Markets continue to price in interest rate cuts from the ECB in April of this year. At its most recent meeting in mid-January, the central bank elected to leave interest rates unchanged.