Eurozone Inflation Falls Below Target
Eurozone inflation dropped to 1.7% in January. This is below the European Central Bank's 2% target.
The European Central Bank meets on Thursday. Leaders are weighing their next steps on interest rates. Low inflation may lead to rate changes soon.
Klear Note — The European Central Bank controls interest rates for 20 European countries. When inflation falls below their 2% target, they may lower rates to help the economy grow.
Key Terms 4
- Eurozone Group of European countries that use the euro as money.
- Inflation When prices for things go up over time.
- European Central Bank The bank that controls money and interest rates for the Eurozone.
- Interest rates The cost banks charge to lend money to people and businesses.