The European Central Bank is cutting its key interest rate, a step to boost an economy that’s struggling to grow as consumers burned by inflation warily eye price tags and businesses try to chart a course amid political turmoil in leading economies

The eurozone economy stagnated in the fourth quarter as political instability weighed heavily on the region’s two biggest countries, offsetting better performance elsewhere.

Europe’s economy stagnated at the end of last year as former growth engine Germany floundered to the end of a second straight year of shrinking output, officials said Thursday. Gross domestic product was flat with a zero increase in the final quarter of 2024 in the 20-nation eurozone,

The year-on-year eurozone inflation figure for December has confirmed preliminary estimates coming in at 2.4%, according to Eurostat. That was the third consecutive month of growth and, in contrast with November's 2.2%, the highest figure since July.

Economic growth in the eurozone slowed to a halt in the fourth quarter, dragged by contractions in two of its major economies, France and Germany,

The euro zone economy stagnated last quarter as worried consumers zipped up their purses, adding to fears that a long-predicted recovery could be further delayed, Eurostat data showed today.

The bloc’s Gross Domestic Product ( GDP ) increased at an annual pace of 0.9% in Q4 versus 0.9% in Q3 and 1% expected. Separately, the Eurozone Unemployment Rate increased to 6.3% in December, compared to November’s 6.2%.

The euro area annual consumer inflation rate for December was confirmed at 2.4%, its highest level since July, according to a second reading released Friday. Headline inflation accelerated from 2.2% in November, Eurostat data showed.

However, higher U.S. tariffs would likely slow that rebound, if not stall it completely. Economists at Berenberg Bank estimate that a 10% tariff on all U.S. imports from the eurozone would reduce the growth rate by as much as half of a percentage point within a year.

Eurozone consumer price inflation hit an annual rate of 2.4% in December, new data shows, the same level as November and in line with economist expectations. Month-on-month inflation was at 0.4%, also in line with inflation and matching November levels.

The Governing Council today decided to lower the three key ECB interest rates by 25 basis points. In particular, the decision to lower the deposit facility rate – the rate through which we steer the monetary policy stance – is based on our updated assessment of the inflation outlook,

The economy returned to stagnation as 2024 drew to a close, a blow to its hopes for a recovery as it braces for the possibility that Trump will deliver a long-threatened increase in tariffs.