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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 fears over the health of the City’s stock market have been laid bare after trading platform IG became the latest firm to sound the alarm over the “crisis unfolding” on the London bourse.
The FT leads with an image of the Nato leaders in The Hague. The leaders have pledged to meet Trump’s demand for more spending on defence.
In May, Chinese exports to the UK surged by 16.1% compared with the previous year, marking the highest monthly level since February 2022.
Oil prices surged to their highest in five months, Brent crude briefly topped $81 a barrel, after the US joined Israel in striking key Iranian nuclear facilities at Fordow, Natanz, and Isfahan.
FIRMS WARN ON JOB CUTS AS TAXES BITE City AM says high wage growth persisted…
The FT reports on Israeli Prime Minister Benjamin Netanyahu’s claim that Israel has gained control over Tehran’s airspace.
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