Inflation in Europe edges down again. But will Houthi attacks on ships spoil the relief?

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — Inflation is headed down in Europe. The official figure came in at 2.8% on Thursday. That’s more relief for consumers whose paychecks didn’t go as far after inflation peaked at record-high double digits in 2022. The decline also is fueling speculation that it might soon be time for the European Central Bank to start cutting interest rates. But the newfound relief is at risk from attacks on ships in the Red Sea by Yemen’s Houthi rebels. That’s forcing ships carrying goods and fuel to Europe to take longer voyages to avoid the area, raising costs and threatening to slow the decline in inflation.