European inflation eases for 3rd month but prices still bite

By KELVIN CHAN
Associated Press

LONDON (AP) — Europe’s inflation rate has dipped at the start of the year, giving some relief to consumers but still leaving them facing higher prices. The European Union statistics agency said Wednesday that the consumer price index for the 20 countries that use the euro currency reached 8.5% in January compared with a year earlier. That’s down from the annual rate of 9.2% in December. It’s the first report on consumer prices with data from Croatia, which joined the eurozone on Jan. 1. Inflation in Europe has now slowed for the third month in a row, falling from a record high of 10.6% in October. Food and energy prices are persisting as the major factors driving up inflation.