EU Inflation Falls to 3.1%, But Prices Keep Rising

Annual inflation in the EU fell to 3.1% in January 2023, down from 10% in January 2022, indicating slowing price rises. However, prices are still increasing overall.

Inflation varies widely across Europe - Romania had the highest rate at 7.3% in January 2023, while Denmark and Italy had the lowest at 0.9%.

Inflation hit a 40-year high of 11.5% in the EU in October 2022, but has fallen every month since except one.

Eurozone inflation is forecast to keep falling - the preliminary estimate for February 2023 is 2.6%, down from 2.8% in January.

Economic activity and consumer spending in the EU are expected to increase in 2024 as inflation continues to drop and real wages start to rise.