Euro zone inflation rose to an annual rate of 1.8% in January, the European Union statistics agency said confirming its earlier estimates.

On a monthly basis, consumer prices in the 19-country currency bloc went down by 0.8%, confirming market expectations.

Stripped of the volatile components of energy and unprocessed food, an indicator closely watched by the European Central Bank, the annual inflation rate in January was 0.9%, confirming Eurostat's earlier estimate and the market consensus.

The rise of annual inflation was mostly driven by energy prices which increased by 8.1% in January year-on-year, jumping from a 2.6% annualised increase in December.