Euro zone inflation exceeds ECB target
The European Union’s statistics office Eurostat has today revealed inflation in the euro zone rose more than expected in January.
Inflation rose 2.4% on an annual basis in January, up from 2.2% the previous month and continues to exceed the European Central Bank’s (ECB) target of just below 2%.
According to economists, the increase was attributed to higher energy, commodity and food prices.
The latest figures will put pressure on the ECB to lift interest rates from their record low of 1%.
However, many analysts believe the bank will leave rates unchanged as inflation is expected to drop back to target later this year.