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MNI BRIEF: Inflation Dip Opens ECB Path To Q2 Rate Cut Talks

(MNI) London

Eurozone inflation slowed in January, though the annual headline rate still sat just above November's two-year low, potentially offering ECB policymakers an opportunity to discuss a path to rate cuts, though perhaps not by as early as the March 7 meeting.

Headline inflation slowed to an annual 2.8%, down from 2.9% in December, but above the 2.4% seen in November. Core inflation also decelerated, slowing to 3.3% from 3.4% in December, flash data released by Eurostat on Thursday showed.

The ECB wants to return inflation sustainably to 2%, with projections currently pointing to that happening in mid-2025. However, some policymakers now say the target could be hit by as soon as mid-to-late 2024. (See MNI SOURCES: "Biggest Minority" Favours ECB June Cut)

MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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