According to the first estimate, euro zone CPI inflation stayed unchanged at 2.7% Y/Y in January, in line with expectations. Details are not yet available, but we expect the monthly rate to have dropped significantly due to lower prices for clothing & footwear, package holidays and leisure & entertainment, but this was probably partly offset by higher prices for food and energy. It will be interesting to see whether the core reading will finally drop somewhat lower too, after staying unchanged at 1.6% Y/Y during the previous four months. Nevertheless, inflationary pressures are expected to ease further over the coming months, although only gradually as downward price pressures will be partly offset by increases in tax rates and elevated costs of energy.