Eurozone inflation fell to 1.7% in January, below the ECB's 2% target, helped by lower energy costs and a stronger euro. Core inflation eased to 2.2% and services inflation to 3.2%, a sign that domestically driven price pressure is cooling, even if services remain higher than the headline rate. With growth still modest, the data supports the view that policy is now restrictive enough, but the ECB is still expected to keep its benchmark rate at 2% at this week's meeting and wait for more confirmation before cutting again. Markets took it in their stride: the euro was little changed around $1.18 and rate pricing still implies only a small chance of another cut by September, with eurozone bond yields broadly steady.