INFLATION IN THE EURO AREA
Inflation in the euro area reached 2.9% last month, partly due to German subsidies on heating bills. However, core inflation has been falling and is currently at 3.4%. The European Central Bank (ECB) is therefore maintaining a cautious stance on interest rate adjustments, suggesting that any rate cut could be delayed until mid-2024. The ECB's base rate remains at 4%, while closely monitoring the different inflation rates in different member countries.