European inflation eases for third month to 8.5%

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 fell to 8.5% in January from a year earlier. That’s after annual inflation hit 9.2% in December. It’s the first report on consumer prices that includes 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, which have been major factors driving up European inflation, kept sending costs higher.