Illustration of food items placed on the belt of a cash register in a Leclerc supermarket in Valence, France, April 4, 2025.
Nicolas Guyonnet | Afp | Getty Images
Euro zone inflation cooled to 1.7% in January, flash data from statistics agency Eurostat showed Wednesday.
Economists polled by Reuters had expected the inflation rate to dip to 1.7%, down from 2% in December.
Core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, stood at 2.2% in January, a touch down from the 2.3% seen in the year to December.
The latest data shows the key inflation rate has now dipped below the European Central Bank’s 2% target, meaning that the central bank is likely to steer clear of any more rate cuts for the foreseeable future. The central bank next meets on Thursday, and is expected to hold its benchmark interest rate at 2%.
This is a breaking news story, please check for further updates.
