Germany’s inflation rate declined unexpectedly this month, though remains above the target of the European Central Bank, which this week cut its key interest rate. Consumer prices were 2.3% higher in January than the first month of 2024,

The European Central Bank on Thursday cut interest rates by a quarter of a percentage point, saying it expects inflation to fall back to its target later in the year and signaling that further easing is likely in coming months.

The European Central Bank has cut interest rates and kept the door open to further policy easing as concerns over lacklustre economic growth supersede worries about persistent inflation.

The European Central Bank cut interest rates again Thursday and signalled more to come as the eurozone economy flatlines, while warning of trade tensions and uncertainty amid US President Donald Trump's protectionist agenda.

European Central Bank policymakers backed further policy easing on Friday just a day after the bank's fourth straight rate cut, despite fresh surveys pointing to continued inflation momentum. The ECB cut interest rates to 2.

French inflation was stable at the beginning of the year, figures showed Friday, a day after the European Central Bank again lowered its key interest rates amid a eurozone economy going nowhere fast.

European stock markets rose and the euro dipped Thursday, with the European Central Bank expected to cut interest rates as inflation eases and the eurozone economy stalls.