Consumer prices rose by 1.5% year-on-year in January compared to 1% a month earlier, a flash estimate of the Harmonised Index of Consumer Prices from the Central Statistices Office show today - the highest level in five months.

The eurozone economy stagnated in the fourth quarter as political instability weighed heavily on the region’s two biggest countries, offsetting better performance elsewhere.

Against this backdrop, the ECB’s communication in the policy statement and President Lagarde’s comments will hold the key to determining the scope and timing of the next rate cuts as the Bank battles concerns over economic growth and potential tariffs by United States (US) President Donald Trump’s administration.

The European Central Bank is cutting its key interest rate, a step to boost an economy that’s struggling to grow as consumers burned by inflation warily eye price tags and businesses try to chart a course amid political turmoil in leading economies France and Germany.

European official data released on Friday showed that the annual inflation rate in the Euro area has decreased compared to

The euro zone economy stagnated last quarter as worried consumers zipped up their purses, adding to fears that a long-predicted recovery could be further delayed, Eurostat data showed today.

The bloc’s Gross Domestic Product ( GDP ) increased at an annual pace of 0.9% in Q4 versus 0.9% in Q3 and 1% expected. Separately, the Eurozone Unemployment Rate increased to 6.3% in December, compared to November’s 6.2%.

Europe’s economy stagnated late last year as its former growth engine, Germany, finished a second straight year of shrinking output.

Economic growth in the eurozone slowed to a halt in the fourth quarter, dragged by contractions in two of its major economies, France and Germany,

However, higher U.S. tariffs would likely slow that rebound, if not stall it completely. Economists at Berenberg Bank estimate that a 10% tariff on all U.S. imports from the eurozone would reduce the growth rate by as much as half of a percentage point within a year.

Minimum wages rose faster than inflation in most EU member states and candidate countries, leading to real wage growth across the region. Euronews Business examines these changes. View on euronews

Europe’s economy stagnated late last year as its former growth engine, Germany, finished a second straight year of shrinking output.