Economy

Eurozone inflation slows less than expected, clouding hopes of ECB cuts

Consumer prices rose 2.8 per cent across Europe from a year ago in January, above analysts estimates

Core inflation, which omits volatile components such as food and energy, also abated less than envisaged, to 3.3 per cent. Picture: Getty

Euro-zone inflation eased less than anticipated at the start of the year — testing investor expectations that the European Central Bank will begin lowering interest rates as soon as the spring.

After a pick-up in December driven by base effects, consumer prices rose 2.8 per cent from a year ago in January, Eurostat said Thursday. That’s above the 2.7 per cent median estimate in a Bloomberg survey of economists. Core inflation, which omits volatile components ...