Consumer prices rose 0.9 percent in January. This is the first increase in five months.
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The cost of living in the eurozone rose again at the start of the year after five months of falling prices. Consumer prices increased by 0.9 percent in January, as the European statistics agency Eurostat announced in an initial estimate on Wednesday. Economists had only expected an inflation rate of 0.5 percent.
In December and in the three months before, inflation was minus 0.3 percent. One reason for the increase in the new year was, in particular, energy prices, which fell significantly less than in previous months. Industrial goods also rose in price for the first time in several months in January.
Target value two percent
For the European Central Bank (ECB), the price increase comes in very handy. Because the central bank is aiming for just under two percent inflation as the optimum value for the economy, but has missed this target for years. Most recently, the second wave of pandemics and renewed lockdown measures had slowed the economy and inflation development.
During the crisis, the monetary authorities launched extensive aid programs to maintain the flow of credit and to ensure favorable financing conditions. In December they topped up their billion dollar bond purchase program PEPP again.
Companies cope better with the second wave
According to a survey by the ECB, companies in the euro area are coping with the second wave of pandemics and the renewed lockdown measures better than the first surcharge. Companies were generally better able to maintain their production, according to one of the results of a telephone survey between January 4th and 11th, which the euro central bank reported on Wednesday.
With the start of vaccinations, companies now hope that pandemic-related restrictions will be eased considerably. It is uncertain whether this will be the case in the second quarter or later in the year.
According to the telephone survey, in which more than 70 companies from different industries took part, customers were now much more familiar with online sales portals. Export-oriented companies have benefited from growth in other regions of the world where the pandemic has not spread as much.
