Euro zone inflation sinks to 2.4%, below expectations
- Inflation in Europe dropped to 2.4%, the lowest in over two years, due to decreased energy costs, but higher interest rates are hindering economic growth.
- The European Central Bank's projections have been unreliable, and economic indicators suggest weaker growth and disinflation, leading economists to recommend against rate hikes.
- Despite the economic challenges and contraction in the euro area, the ECB may remain hawkish due to a potential resurgence in inflation from external factors.
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Euro zone inflation tumbles, pitting ECB against markets
FRANKFURT – Euro zone inflation tumbled far more than expected this month, a challenge to the European Central Bank’s narrative that price growth remains stubborn and likely fueling bets on early spring rate cuts in defiance of the bank’s explicit guidance. Consumer price growth in the 20 nations sharing the euro currency dropped to 2.4
·Manila, Philippines
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