Euro-zone inflation eases as ECB debate over rates heats up

Data this week suggested the euro-region economy will dodge a recession, while the manufacturing industry is recovering and unemployment held at a record-low in December.

Euro-area inflation slowed more than expected, suggesting a more heated debate to come at the European Central Bank over how much more interest rates must still rise.

January’s reading came in at 8.5%, Eurostat said Wednesday, less than economist estimates for a slowdown to 8.9%.