Middle East conflict poses fresh test to central banks as oil shock fuels inflation

In January 2026, industrial producer prices rose by 0.7% in the euro area and 0.8% in the EU, as reported by Eurostat. This marks a shift from the previous month's decline of 0.3% in the euro area. The increase indicates a potential recovery in industrial

The euro area recorded a seasonally adjusted unemployment rate of 6.1% in January 2026, showing a slight decrease from 6.2% in December 2025 and 6.3% a year earlier. Similarly, the broader EU unemployment rate fell to 5.8%, down from 5.9% in the previous month and

The UK service sector experienced a continued increase in business activity during February, buoyed by improving demand. Despite this positive trend, staffing levels fell for the seventeenth consecutive month, reflecting ongoing pressure on margins stemming from elevated business costs. Service providers are struggling to balance growth with expenses, complicating their