
The economic outlook for Europe and the euro area is cloudy due to trade tensions and global risks, including tariff threats from the US. While global and regional developments in the economy are important, people primarily focus on how these factors affect their daily lives. For households, inflation is one of the biggest concerns.
In 2024, annual inflation in the euro area, measured by the Harmonised Index of Consumer Prices (HICP), stood at 2.4% according to Eurostat. This headline inflation reflects the overall rise in consumer prices.