FRANKFURT, Germany (AP) – Inflation in Europe edged lower in January to 2.8%, keeping alive speculation about quick interest rate cuts that would lower borrowing costs for businesses and consumers – and help boost the stagnating economy.
The annual figure released Thursday by the European Union statistics agency Eurostat compares with 2.9% in December and matched what was expected by market analysts.
Energy prices fell 6.3%, contributing to the drop in inflation in the 20 European Union countries that use the euro currency. The overall decline brings the European Central Bank closer to its goal of 2% considered best for the economy.
For Import-Dependent West, Costs Will …