Inflation in Europe declined to an annualized rate of 8.5% in January as energy costs continue to fall from the highs seen last year.
European inflation dropped in January from a rate of 9.2% in December. Energy charges fell to 17.2% during the month from 25.5% in December.
However, food costs throughout Europe rose slightly to 14.1% in January from 13.8% in December.
The Euro zone region, which is comprised of 20 countries, experienced significant price increases in 2022 after Russia’s invasion of Ukraine pushed up energy and food costs.
The January data shows that inflation is now starting to ease on the continent.
The European Central Bank (ECB) is scheduled to make its next decision on interest rates on February 2. The central bank raised rates four times during 2022, and economists expect at least two more increases in the coming months.
