The final estimate of January consumer prices showed the headline CPI falling 0.2 percent versus January, in line with its provisional estimate. However, the yearly inflation rate of was nudged a tick lower to 1.3 percent, although this was still up some 0.7 percentage points from last time and its highest mark since November 2012.
The flash HICP was revised to a slightly steeper 0.3 percent monthly decline but the 1.6 percent annual rate stays, double the 0.8 percent rate recorded in December.
However, as previously signalled, the main upward pressure on the 12-month headline rate came from fresh food and energy where prices were up a monthly 2.8 percent and 4.5 percent respectively. As result, while the seasonally adjusted overall CPI was fully 0.7 percent stronger than in December, the core index rose a smaller 0.4 percent. Even so, this was enough to see the underlying annual inflation rate climb 0.3 percentage points to 0.7 percent.
There is little new in today's report which, once again, underlines the importance of the more volatile sectors to headline inflation. Underlying developments, despite January's rise, remain generally subdued.