Economics

Inflation figures for January show that for the fourth month running inflation has increased on both sides of the Atlantic, including Ireland. In Ireland the rate in January was 1.9% having been half that in October. It should be noted, however, that by international standards that is quite low. In the US the January rate is now 3.0% and in the EU, 2.5%, both figures outside the monetary targets. The ECB cut rates in January, and cuts may take place due to the weak Euro economy, inflation notwithstanding. In the US growth is strong and in January the Fed held its main rate at 4.5%. and further cuts are off the table for the time being. In Ireland, the increase in inflation is mostly attributable to services prices, particularly in the hospitality sector.