Eurozone Inflation Dips to 1.7% in January, Bulgaria at 2.3%

Annual inflation across the eurozone eased to 1.7% in January, marking a 16-month low and down from 2.0% in December 2025, according to preliminary data from Eurostat. This is the lowest inflation level since September 2024 and remains below the European Central Bank’s 2% target, supporting expectations that interest rates in the eurozone will remain stable for the foreseeable future.

Across the European Union, consumer inflation also moderated, falling to 2.0% in January from 2.3% at the close of 2025.

In Bulgaria, annual harmonized inflation slowed to 2.3% in January, down from 3.5% in December 2025 and 3.8% a year earlier in January 2025. This represents the lowest inflation level in the country since December 2024. Meanwhile, 13 other EU member states saw stronger growth in consumer prices during the first month of the year.

Among EU nations, the highest inflation in January was reported in Romania at 8.5%, followed by Slovakia at 4.3%, Estonia at 3.8%, Croatia at 3.6%, and Latvia and Greece both at 2.9%. Conversely, the lowest inflation rates were recorded in France (0.4%), Denmark (0.6%), and Finland and Italy (both at 1.0%).

On a monthly basis, prices in the eurozone fell by 0.6%, while the EU as a whole saw a 0.4% decline. In Bulgaria, however, monthly harmonized inflation increased slightly by 0.6% in January.