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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 Rishi Sunak’s reshuffle was his third attempt to relaunch the Conservative Party, and this time he’s also reheating David Cameron’s career, writes Will Cooling
The Financial Times leads on the big news from Monday’s cabinet reshuffle.
CITY AM SAYS Deputy Prime Minister Oliver Dowden has announced plans to streamline and enhance the business-friendliness of the UK’s investment screening powers, just under two years since their inception.
The Financial Times leads on the conflict in the Middle East, with officials in Washington warning Israel not to fire on hospitals in Gaza.
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