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Business Briefing
In January 2026, annual inflation in the euro area decreased to 1.7%, down from 2.0% in December 2025, a notable shift that hints at easing cost pressures within households. However, beneath the headline figures, a diverse inflation landscape emerges; for instance, Romania and Slovakia reported significantly higher rates at 8.5% and 4.3%, respectively. This disparity signals potential challenges in achieving cohesive monetary stability across the bloc, as elevated inflation in certain member states could affect overall policy effectiveness. As the euro area adapts to these variances, the broader implications for economic cohesion in the region warrant careful observation.
This morning, Eurostat reported that annual inflation in the euro area is anticipated to decline to 1.7% in January 2026, down from 2.0% in December. Key components such as services and food show varied inflation rates compared to last month.
This morning, Eurostat released flash estimates indicating a 0.3% increase in GDP for both the euro area and the EU in Q4 2025. Year-on-year growth stands at 1.3% for the euro area and 1.5% for the EU. Employment rose by 0.2% in the same quarter.
CITY AM SAYS Younger lawyers are asking to duck out of work on clients who clash with their ‘ethical’ standards, a new survey has revealed.
The Sterling currency dropped to its lowest level in almost two months yesterday, while British stocks and bonds gained strength.
The Financial Times reports Rishi Sunak has vowed to introduce emergency legislation to rescue the government’s plan to send asylum seekers to Rwanda.
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The Financial Times reports on a jump in the US stock markets following a larger-than-expected fall in inflation.
New data shows a sharp fall in UK inflation, down to 4.6%. It’s the lowest rate since November 2021, the rate in September was 6.7%.
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