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Inflation in Europe slowed for the third consecutive month in January

Inflation in Europe slowed for the third consecutive month in January

In December by 2022, the inflation rate had closed at 9.2%after reaching a historical record of 10.6% October.

8.5% registered in January is below most expectations observers and analysts, such as the consultancy Factset, which had projected inflation of 9%.

In this picture, inflation finally seems to show signs of consolidating a retraction tendencyafter a year and a half of successive rises that set off alarm bells.

As in previous months, the price of energy was the main vector of the inflation ratealthough he experienced a sensitive recoilto the fall from 25.5% in December to 17.2% registered in January.

While, the food, alcohol and tobacco segment experienced a rise of 14.1%above the 13.8% it had exhibited in December 2022.

The non-energy industrial goods also experienced a very slight rise, with a 6.9% in January against 6.2% in the previous month. Finally, the services fell from 4.4% in December to 4.2% in January.

In accordance with Eurostathe unemployment of the euro area in January remained stable at 6.6% in relation to the previous month.

Authorities of the European Central Bank They maintained last week that they would not be surprised if the interest rate continues to rise during the second quarter, after the two scheduled for February and March.

ECB He promised to raise your interest rate official half a percentage point this week to 2.5%. But the monetary authorities expressed different preferences for marchwhich suggests that the discussion is open despite the orientation of a significant tightening of monetary policy still “steady pace”.

In addition, the European Union banking regulators started this Tuesday a resistance test to see how banks could cope with a long period of inflation and high interest rates. This happens just when expected that he European Central Bank raise them even higher loan costs.

Source: Ambito

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