INFLATION FALLS IN THE EURO AREA
Inflation in the euro area:
- Trend: Declining, reinforcing expectations of an ECB interest rate cut.
- Economies: Inflation rates fell in France, Spain and Germany.
- Germany: Possible easing of wage pressures in the labour market.
Expectations in February:
- Expectations: Inflation rate in the euro area is expected to fall to around 2.5%.
- Analysts: Forecast a slight decline and highlight the ongoing disinflationary trend in the region.
ECB and future actions:
- March 7 meeting: the ECB may confirm an improved inflation outlook.
- Preparing for a rate cut: Potential move to cut interest rates in the future.
- Impact of key factors:
- Stagnant economic growth: still persists as a key factor.
- Labour market: Tight labour market affects price stability in the region.
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