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Eurozone Inflation Slows For Third Month; Flash Confirmed

Eurozone's inflation eased for a third straight month in January to its lowest level in nine months, thanks to slower increase in energy prices, while core inflation accelerated at a faster than estimated pace, latest data from Eurostat confirmed on Friday.

The consumer price index rose 1.4 percent year-on-year in January, in line with the flash estimate released on February 1.

December's annual inflation figure was revised down to 1.5 percent from 1.6 percent.

Inflation was the lowest since April last year, when it was a revised 1.2 percent.

Core inflation, which excludes prices of energy food, alcohol and tobacco, accelerated to 1.1 percent in January, as estimated earlier.

The core inflation rate for December was revised lower to 0.9 percent from 1 percent.

The European Central Bank targets inflation "below, but close to 2 percent."

In January, the energy component registered the biggest annual increase of 2.7 percent, which was slower than December's 5.5 percent rise.

This was followed by food, alcohol & tobacco, up 1.8 percent, same as in December.

Prices of services rose 1.6 percent, which was faster than the 1.3 percent gain in the previous month. Services made the biggest contribution to the annual inflation rate.

Non-energy industrial goods prices edged up 0.3 percent, slightly slower than the 0.2 percent gain in each of the previous three months.

Among the euro area countries, Greece registered the lowest inflation rate of 0.5 percent, while Latvia had the biggest figure at 2.9 percent.

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