Unemployment drops, inflation jumps as Europe recovers
FRANKFURT — Europe’s economic recovery is gathering speed, with growth up, inflation spiking sharply higher and unemployment at its lowest in nearly eight years, official figures showed Tuesday.
In perhaps the most striking development, European Union statistics agency Eurostat said inflation across the 19 countries that share the euro currency rose sharply in January — a move that will likely encourage critics who think it’s time for the European Central Bank to start withdrawing its stimulus programs.
Inflation jumped to an annual 1.8 per cent in January, from 1.1 per cent the month before. That’s the highest level since February 2013 and means inflation is arguably at the ECB’s goal of just below 2 per cent.
Eurostat also said eurozone growth inched up by a quarterly rate of 0.5 per cent in the fourth quarter of 2016 from the previous three-month period when growth was 0.4 per cent.