Euro area final HICP inflation likely remained flat in January

Final January HICP inflation for euro area is expected to remain same at 0.4% y/y. According to details from the flash, all components except food positively contributed to the headline inflation. The energy component is expected to have risen to -5.3% yoy from -5.8% yoy, contributing 5bp to the headline, whereas food prices decelerated slightly to 1.1% y/y, subtracting 2bp from the headline.

The core HICP reading was 1%, slightly higher than December's 0.9% y/y. On core details, non-energy industrial prices and prices paid for services are likely to have accelerated in January, contributing 5bp and 4bp to the headline respectively.