FX.co ★ Euro Zone Core Inflation Eases to 2.1% in January, Signalling Gradual Cooldown

Core inflation in the Euro Zone, measured by the Harmonised Index of Consumer Prices excluding energy and food (HICP ex Energy & Food), eased to 2.1% year-over-year in January 2026, down from 2.3% in the previous reading. The data, updated on 25 February 2026, indicates a modest but continued cooling in underlying price pressures.

Both the current and previous indicators are based on year-over-year comparisons: the latest figure reflects the change in January 2026 versus January a year earlier, while the prior 2.3% reading compared the previous month’s change with the same month a year before. The slight decline in core inflation suggests that price dynamics in the Euro Zone’s underlying basket are stabilizing after a period of elevated pressures, potentially easing some of the longer-term concerns about persistent inflation in the bloc.