Quotes from Societe Generale Cross Asset Research:
-Euro area HICP inflation came in at -0.6% yoy in January while the core component also eased to +0.6% yoy from +0.7% yoy. The bulk of the deceleration stemmed from the energy component (from -6.3% yoy to -8.9% yoy) which, alone, explains 28bp of the fall. Food inflation edged into negative territory, from 0.0% to -0.1% yoy (cutting 2bp from the headline).
-We also observed a deceleration in the core component, with services falling from 1.2% yoy to 1.0% yoy (cutting 9bp from the headline) while goods also fell from 0.0% yoy to -0.1% yoy (cutting 3bp from the headline).
