Euro zone inflation cooled to 1.7% in January, flash data from statistics agency Eurostat showed Wednesday.
Economists polled by Reuters had expected the inflation rate to dip to 1.7%, down from 2% in December.
Core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, stood at 2.2% in January, down a touch from the 2.3% seen in the year to December.
The latest data shows the key inflation rate has now dipped below the European Central Bank’s 2% target, meaning it’s likely to steer clear of any more rate cuts for the foreseeable future.
The central bank next meets on Thursday and is expected to hold its benchmark interest rate at 2%. Economists expect no change in the coming months either, but note that there are a few factors that might change the ECB’s stance.
