Annual inflation in the euro area drops to 1.7%

Euro Area and EU Inflation Rates Decline in January 2026

In January 2026, the annual inflation rate for the euro area dropped to 1.7%, a decrease from 2.0% in December. For comparison, the rate stood at 2.5% in January of the previous year. Across the European Union, inflation reached 2.0% in January 2026, down from 2.3% in December and lower than the 2.8% recorded a year earlier. These statistics were released by Eurostat, the European Union’s official statistical agency.

Among EU countries, France reported the lowest annual inflation at 0.4%, followed by Denmark at 0.6%, while both Finland and Italy saw rates of 1.0%. On the other hand, Romania experienced the highest inflation at 8.5%, with Slovakia and Estonia following at 4.3% and 3.8% respectively. Compared to December 2025, twenty-three EU Member States saw a reduction in their annual inflation rates, while others remained stable or increased.