Inflation drops sharply in Europe but some prices are still rising faster | CNN Business

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Inflation in Europe continued to decline in December as energy prices rose at a slower pace

Prices across the 19 countries that used the euro in 2022 increased at an annual rate of 9.2% in December, the European Union’s statistical office said Friday. In November, prices rose 10.1%. Annual inflation in the euro area reached a record high of 10.6% in October. The pullback in headline inflation is a positive development for households and businesses that have been battered by high costs.

2%. Core inflation, which strips out volatile food and energy prices, reached 5.2% in December, up from 5% in November. “There can therefore be no talk of a sustained weakening of inflation,” Ralph Solveen, a senior economist at Germany’s Commerzbank, said in a research note. The data is likely to encourage the European Central Bank to stick with its policy of raising borrowing costs.

 

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