Eurozone: Annual core CPI stayed unchanged at 1.1% as expected

• Annual core inflation in eurozone remained unchanged at 1.1% in January.
• EUR/USD pair pulls away from session highs after soft inflation data.

Inflation in the euro area, as measured by the Consumer Price Index (CPI), fell to -1% on a monthly basis in January and stayed unchanged at 1.4% on a yearly basis, the data published by the Eurostat revealed on Friday. These readings came in line with market estimates.

Further details of the report showed that the core CPI, which strips volatile food and energy prices, remained steady at -1.7% and 1.1% on a monthly and yearly basis, respectively.

EUR/USD reaction

After advancing to a daily high of 1.0820 on the upbeat PMI data earlier in the session, the EUR/USD pair lost its traction and was last seen trading at 1.0805, still up 0.2% on the day.