inflation in Europe fell in January, which gave some relief to consumers but still let them down facing higher The prices that led to the protests are likely to pressure the European Central Bank (ECB) in another direction rate Thursday high.
consumer price index for 20th countries that use The euro currency reached 8.5%. in January comparison with a year Earlier, the European Union’s statistics agency Eurostat reported Wednesday. this down from annual rate of 9.2% in Dec.
it’s the first Report on Consumer prices that include data from Croatia, which joined Euro-zone on January 1, but it lacks the numbers unavailable from Germany, Europe’s largest economy. inflation in Europe has now slowed down for the third mounth in row of falling off record high of 10.6% in October.
Food and energy prices remain the main drivers up European inflation. the prices for Food, alcohol and tobacco prices increased at an average of 14.1% annually pace in January, while energy prices increased by 17.2%.
Russia war in Ukraine shook up food and energy markets, while commodity prices fell from all-time highs last yearConsumers do not see relief yet on their utility and grocery bills.
Natural gas prices have fallen from records last Summer thanks scramble to find supplies outside Russia has a warmer winter weather Lighten up demand for heating. While Europe may have avoided fears of Energy rationing and its shortage after the downsizing of Russia off Most supplies, natural gas prices are still three times higher than it was before Russia began amassing forces on Ukraine borders.
energy revolution made the cost-ofLive pressure more painful in Continental Europe and the United Kingdom from in United State, leading Workers’ protests and strikes in several countries Find a paycheck to keep pace with inflation.
The annual inflation rate in the United States has fallen to 6.5%. in December, as you read the UK of 10.5% indicated how British economy It was a stark exception to the brighter expectations of the International Monetary Fund for 2023.
In the eurozone, so-called core inflation, which excludes volatile food and energy costs, held steady at 5.2%. last month, underscore how the prices also We are rising for Services and goods such as clothing, appliances, cars, and computers.
Germany’s inflation figure was not available Because of Technical issue So an estimate was used. Economists said this means an inflation figure should It is taken with a pinch of salt.
Still, “when it comes to cash policyThis is it just noise, Jack Allen Reynolds of Capital Economics said in a report. Core inflation rate sends a file clear signal: the basic price stress remain strong.”
With inflation well above its target of 2%, the European Central Bank was raising interest rates, making it higher more expensive for consumers to borrow money. aim to get it price The screws are under central control bank It is expected to establish another half point high Thursday.
That will come a day later decision By the US Federal Reserve (Fed) and on the same day bank of England Code (BoE) on borrowing costs.
Center bank moves to calm inflation also economy strain f with europe eking out just 0.1% growth in the final Three months of last year and 3.5% for All of 2022. This expansion exceeded 2.1% in United States and China 3% growth last year.
