(Feb 4): Euro-area inflation sank further below the European Central Bank’s 2% target as officials weigh their next steps on interest rates. Core inflation, excluding volatile food and energy costs, unexpectedly eased to 2.2%, while the closely watched services gauge slowed to 3.2%, Eurostat said Wednesday. After falling short this year and next, inflation is projected to return to the ECB’s goal and policymakers generally consider themselves well placed. While German inflation of 2.1%, just exceeded expectations, France unexpectedly recorded a five-year low of 0.4%. In light of such lingering uncertainty, ECB policymakers called for total flexibility on rates at their December meeting.

Source: The Edge Markets February 04, 2026 10:37 UTC