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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.
The Trump Organisation has launched a mobile service and smartphone to attract conservative consumers, promising products made in America.
Analysts warn that Section 899 of the “One Big Beautiful Bill”—Donald Trump’s proposed retaliatory tax on foreign entities—could deter investment by imposing a tax starting at 5 %, rising to 20 %, on companies from countries that levy “unfair” taxes on US entities.
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The chancellor will release £39bn for affordable housing, saying the money is “the biggest boost to social and affordable housing in a generation.”
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