Eurozone Inflation Continues to Rise for the Fourth Month:
The annual inflation rate in the Eurozone increased for the fourth consecutive month in January, posing a challenge
for the European Central Bank (ECB) in implementing its plans to cut interest rates in the coming period.

Contents

Eurozone Inflation

USAID Layoffs

Improved German Business Sentiment

Eurozone Inflation Continues to Rise for the Fourth Month, Hindering Rate Cut Plans

The annual inflation rate in the Eurozone continued its upward trend for the fourth consecutive month in January,
which could complicate the ECB’s plans to lower interest rates.

According to data released by Eurostat on Monday,
the annual consumer price inflation rose to 2.5% in January, up from 2.4% in December.
Meanwhile, core inflation, which excludes volatile food and energy prices, remained stable at 2.7%, aligning with initial estimates.

The services sector, the largest contributor to overall inflation, saw a slight slowdown,
recording 3.9% year-over-year, compared to 4% in December.

By country, Hungary recorded the highest inflation rate in the Eurozone in January at 5.7%, followed by Romania at 5.3%.
In Germany, Europe’s largest economy, inflation rose to 2.8%, reflecting ongoing inflationary pressures in the region.

USAID Lays Off 2,000 Employees and Places Others on Administrative Leave

The United States Agency for International Development (USAID) has laid off 2,000 employees across
the U.S.. At the same time, most of the remaining staff will be placed on administrative leave,
according to an email sent to employees on Sunday.

The message stated that all directly hired employees,
except for key leadership and those handling essential tasks or specific programs,
will be globally exempt from duty starting at 11:59 PM ET.
It also confirmed that official layoff notices will be issued soon.

The move has sparked strong criticism, with the American Foreign Service Association (AFSA) expressing discontent.
AFSA President Tom Yazdgerdi called the decision “rushed and harsh,”
citing the significant impact on employees’ personal and professional lives.

These layoffs follow a federal judge’s ruling on Friday.
The ruling lifted a temporary restraining order that had prevented the government
from placing thousands of employees on forced leave and allowed the administration to proceed with its planned workforce reductions.

The layoffs have affected employees in USAID’s Office of Humanitarian Assistance,
which is responsible for rapid disaster response worldwide.
These changes are part of broader structural reforms within USAID,
one of the largest federal agencies providing humanitarian aid globally.

Improved German Business Sentiment in February Raises Hopes for Economic Recovery

According to IFO Institute data released on Monday,
business sentiment in Germany improved in February,
boosting optimism for a recovery in Europe’s largest economy
especially following the conclusion of parliamentary elections,
which could contribute to greater government stability.

The Business Climate Index rose to 85.4 points in February,
up from 84.3 points in January, exceeding Bloomberg analysts’ expectations of 85 points.
The industrial sector remains negative, but the index improved to -22.1 points in February,
up from -24.8 points in the previous month.
The services sector saw a decline, with its index falling to -4.3 points in February,
compared to -2.2 points in January, particularly in transportation and logistics.
The trade sector index also remained negative at -26.2 points,
but wholesale and retail businesses expressed a more optimistic outlook than in previous periods.

Eurozone Inflation Continues to Rise for the Fourth Month

Eurozone Inflation Continues to Rise for the Fourth Month

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