Eurozone Inflation Hits Six-Month High Amid ECB Policy
Eurozone inflation surged to 2.5% in January, marking the highest rate since July and remaining above the European Central Bank's medium-term target of 2% for the third consecutive month. This marks the fourth consecutive increase in annual inflation since it hit a three-year low of 1.7% in September 2024. The main drivers of inflation were services, food, alcohol, and tobacco, with Hungary recording the highest inflation rate at 5.7%, while Denmark posted the lowest at 1.4%.
- The ongoing struggle to bring inflation back under control may lead policymakers to consider more drastic measures to curb price growth.
- How will the European Central Bank's policy decisions on interest rates impact economic growth in the eurozone, particularly for smaller economies with higher inflation rates?