Euro zone inflation reaches 2.3% in January
The European Union’s statistics office Eurostat has today revealed inflation in the euro zone rose to 2.3% in January – albeit lower than an earlier projection of 2.4% and compares with 2.2% in December.
However, the rate remains above the European Central Bank’s target of just below 2%.
The ECB has previously suggested inflation in the 17-member nation will peak in March but will remain above 2% this year.
Many major economies are battling with higher inflation, which is rising due to higher energy, commodity and food prices.
Many central banks across the world have lifted interest rates as a result but the ECB recently opted to keep interest rates on hold at the record low of 1% for the 20th consecutive month.
However, many analysts believe the ECB will leave rates unchanged in the short-term as inflation is expected to drop back to target later this year.