Inflation in Europe edges down again. But will Houthi attacks on ships spoil the relief?
ABC News
Inflation is headed down in Europe
FRANKFURT, Germany -- Inflation in Europe edged lower in January to 2.8%, keeping alive speculation about quick interest rate cuts that would lower borrowing costs for businesses and consumers — and help boost the stagnating economy.
The annual figure released Thursday by the European Union statistics agency Eurostat compares with 2.9% in December and matched what was expected by market analysts.
Energy prices fell 6.3%, contributing to the drop in inflation in the 20 European Union countries that use the euro currency. The overall decline brings the European Central Bank closer to its goal of 2% considered best for the economy.
The steady fall in inflation should help the stagnant European economy show stronger growth later this year as moderating prices and wage increases help consumers make up the purchasing power they lost when inflation surged to record-high double digits in late 2022.
Inflation has fallen steadily as the ECB rapidly raised interest rates, the typical antidote to out-of-control price increases.
