The euro area annual inflation rate was 1.7% in January 2026, down from 2.0% in December. For the European Union as a whole, the annual rate fell to 2.0% from 2.3% in the previous month. Compared to January 2025, when rates stood at 2.5% and 2.8% respectively, the disinflationary trend across the continent is evident.

The lowest annual rates were registered in France (0.4%) and Denmark (0.6%), followed by Finland and Italy at 1.0%. In contrast, Romania was joined at the top of the index by Slovakia (4.3%) and Estonia (3.8%). Across the 27 Member States, annual inflation fell in twenty-three countries, remained stable in one, and rose in three.

Within the euro area, services remain the primary driver, contributing +1.45 percentage points (pp) to the annual rate. Food, alcohol, and tobacco added +0.51 pp, while energy costs provided a significant downward pull of -0.39 pp.