According to the report from Eurostat, euro area annual inflation is expected to be 0.9% in January 2021, up from -0.3% in December. The core figures came in at 1.4% in January when compared to 0.9% expectations and 0.2% recorded in December.

Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in January (1.5%, compared with 1.3% in December), followed by services (1.4%, compared with 0.7% in December), non-energy industrial goods (1.4%, compared with -0.5% in December) and energy (-4.1%, compared with -6.9% in December).