Europe’s inflation slows again but cost of living still high

Europe ended a bad year for inflation with some relief as price gains eased again. While the cost of living is still painfully high, the slowdown is a sign that the worst might be over for weary consumers. The consumer price index for the 19 countries that used the euro currency rose 9.2% in December from a year earlier, the slowest pace since August, the European Union statistics agency Eurostat said Friday. Croatia joined the eurozone on Jan. 1. It was the second straight decline in inflation since June 2021. In November, the rate dipped to 10.1% after peaking at a record 10.6% in the previous month. Households and businesses across Europe have been plagued by surging energy costs since Russia launched its war in Ukraine in February, which played havoc with oil and natural gas markets and have been the main driver of inflation. The latest numbers indicate that the energy crisis may be easing for now. Energy price rises slowed to 25.7%, down from 34.9% in November and 41.5% in October. Natural gas prices have slipped from all-time highs this summer as Europe has largely filled its storage for winter with supplies from other countries while warmer-than-usual weather has reduced fears of a shortage during the heating season. (Source AP)