Euro Zone Inflation Eases as Core Figures Disappoint, Boosting Hope for Early ECB Rate Cut

Euro zone headline inflation slightly eased in January as expected, with annual price rises at 2.8%, while core inflation declined to 3.3%. Services inflation held steady at 4%, and disinflationary effects from the energy market continued to reduce. Economic growth in the euro zone has been stagnating, with Germany's GDP contracting by 0.3% in the fourth quarter. The European Central Bank is monitoring data to determine when to bring interest rates down from their current record highs, with some policymakers suggesting cuts may occur in the summer or later.