Wednesday 04/February/2026 – 01:19 PM
Wednesday’s data showed a decline Inflation In the euro zone last month, at the beginning of a slowdown that economists expect to last at least a year, which could derail the plans of the European Central Bank.
According to Reuters, price growth in the 21 countries that use the euro fell to its lowest level since September 2024, falling to 1.7% in January, affected by the decline in energy prices, and the data was in line with economists’ expectations.
But a key measure of core inflation that excludes volatile items such as energy, food, alcohol and tobacco, unexpectedly fell to 2.2% from 2.3% in December, as prices in the services sector continued to fall.
Expectations of stabilization of interest rates by the European Central Bank
In general, these data are unlikely to lead to any immediate action from the European Central Bank, which is expected to keep interest rates unchanged tomorrow, Thursday, and throughout the rest of the year.
The European Central Bank expects inflation to fall slightly below its target of about 2% this year and next, before reaching it in 2028.
Inflation has been hovering around 2% for at least a year after a wave of price hikes fueled by the economic recovery after the Covid-19 pandemic and Russia’s invasion of Ukraine in 2022, which sent fuel prices higher.
