Euro-zone inflation unexpectedly quickens, backing ECB caution

On top of levies for China, Mexico and Canada, US President Donald Trump reiterated a warning to the European Union that tariffs “will definitely happen.”

Euro-area inflation unexpectedly accelerated, supporting the European Central Bank’s cautious approach to lowering interest rates while the sputtering economy faces intensifying trade threats from the US.

Consumer prices advanced 2.5% from a year ago in January, up from 2.4% in December and more than the stable reading predicted by economists, Eurostat said.