• Prior +1.9%; revised to +2.0%
• Core CPI +2.2% vs +2.3% y/y expected
• Prior +2.3%

The headline reading meets estimates with core annual inflation easing slightly in January. That being said, just be wary that Eurostat has introduced some methodological changes to the inflation estimates as of this report, as seen here. Overall, the changes in the four main special aggregates
(food, alcohol & tobacco, energy, non-energy industrial goods, and services) are quite negligible. To be more specific, they range from
-0.04% to +0.02%.

The good news at least is that services inflation is seen easing slightly from 3.4% in December to 3.2% in January. However, food price inflation remains elevated at 2.7% – compared to 2.5% last month.

At around the same time, we’re getting the Italian preliminary CPI estimate for January as well. The data as per the following:

• CPI +1.0% vs +1.0% y/y expected
• Prior +1.2%
• HICP +1.0% vs +0.9% y/y expected
• Prior +1.2%