Eurozone inflation drops to 2.6% in January

PanARMENIAN.Net - Official figures show that inflation across the 17 countries that use the euro unexpectedly eased in January, in a further sign that a waning economy is weighing down on price pressures, AP reported.

Eurostat, the EU’s statistics office, said eurozone inflation dropped to 2.6 percent in the year to January from 2.7 percent the month. In its previous estimate for the month, Eurostat said there had been no change from December’s rate.

On Thursday, March 1 the statistics office publishes its first estimate for February. If it falls further, it may stoke expectations that the European Central Bank may cut interest rates again in the next few months.

The ECB holds its monthly policy meeting next week and expectations are that it will keep its benchmark rate unchanged at 1 percent.