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Euro zone inflation rises to hotter-than-expected 2.5% in January

  • Euro-Area inflation rose to 2.5% in January, up from 2.4% in December, according to Eurostat.
  • Core inflation remained stable at 2.7%, while the European Central Bank cut interest rates to 2.75%, signaling that more reductions may follow.
  • The rise in consumer prices was driven by energy costs, which increased by 1.8% year-on-year, impacting various sectors.
  • Policymakers are optimistic that price pressures will ease, focusing on supporting the struggling economy in the Eurozone.
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