25.02.202610:00:00UTC+00Euro Zone Core CPI Turns Sharply Negative in January, Signaling Deflationary Pressures

Core consumer prices in the Euro Zone fell sharply in January 2026, with the month‑over‑month Core CPI dropping to -1.1%, according to data updated on 25 February 2026. The move marks a striking reversal from the previous reading of 2.3% month‑over‑month recorded in January 2026, which had indicated robust underlying price growth compared with the prior month.

The Core CPI, which excludes volatile items and serves as a key gauge of underlying inflation, is now signaling outright disinflation on a monthly basis. The “Actual” figure reflects how prices in January changed relative to December, while the “Previous” value of 2.3% measured the change in the prior month against its preceding month. The abrupt swing from strong positive growth to negative territory highlights a rapid cooling in price momentum across the Euro Zone.

This sudden downturn in core prices raises questions about the durability of inflationary pressures in the bloc and will likely draw close scrutiny from policymakers and market participants. With monthly core inflation slipping into negative territory, investors may reassess expectations for the trajectory of monetary policy and growth in the region.