Euro zone headline inflation eased slightly in January, according to flash figures published by the European Union’s statistics agency. Core inflation also declined, but less than expected.

Inflation Rates

Annual headline price rises came in at 2.8%, which aligns with the forecast of economists polled by Reuters. In December, inflation stood at 2.9%, an increase from November’s 2.4%, primarily driven by the wind-down of energy price support measures.

Core inflation for January was 3.3%, slightly higher than the 3.2% forecast by Reuters.

Economic Growth and Interest Rates

The euro zone has been experiencing stagnating economic growth, prompting European Central Bank officials to closely monitor various data points to determine when they can consider lowering interest rates from their current record highs.

While markets are anticipating interest rate cuts to commence in April, some policymakers have suggested that cuts may be more likely to occur in the summer, or even later. The ECB emphasizes its reliance on data to guide its decisions.

Disclaimer

Please note that this is a developing news story. Please check back for updates.