Global Economy Briefing: January 19, 2026

Key Points

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• Eurozone inflation cooled to 1.9% y/y, while core held at 2.3% y/y.

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• Canada’s inflation stayed near target, but monthly core turned more negative and vehicle sales fell.

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• China held lending rates and Korea’s producer inflation stayed steady, keeping Asia’s price pulse calm.

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United States

\nU.S. markets were closed for Martin Luther King, Jr. Day. Liquidity was thinner than usual, so Europe’s data carried more weight.
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Europe and UK

\nEurozone headline CPI eased to 1.9% y/y, with a 0.2% m/m rise. Core CPI held at 2.3% y/y and rose 0.3% m/m. That is consistent with disinflation, but it also shows the “last mile” is still sticky. HICP ex-energy and food matched core at 2.3% y/y, up 0.2% m/m.
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\nFrance’s bill yields edged lower across the curve (12-month 2.085%, 6-month 2.048%, 3-month 2.019%). That signaled steady short-end demand in a low-volatility session.
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\nPortugal’s current account remained strong at €5.185B, only slightly below the prior month. Eurogroup meetings were on the calendar, reinforcing the policy backdrop even without a new headline in the dataset. Germany’s Bundesbank monthly report was also scheduled.
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Canada

\nInflation stayed close to target, but the monthly profile softened. Headline CPI was 2.4% y/y and −0.2% m/m. Core CPI was 2.8% y/y and −0.4% m/m. Median CPI eased to 2.5% y/y, and trimmed CPI to 2.7% y/y.
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\nVehicle sales fell to 150.8k from 165.6k, pointing to a cooler goods cycle. The BoC business outlook survey was scheduled, but no value was provided here.
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Asia-Pacific

\nChina left both loan prime rates unchanged (1-year 3.50%, 5-year 3.00%). That is a “stability first” signal rather than fresh stimulus. Korea’s PPI held at 1.9% y/y, with a 0.4% m/m rise. The pipeline remains firm but not alarming, which keeps policy optionality intact.
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Latin America and Africa

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Brazil’s Focus survey showed slightly lower 2026 inflation expectations within the target ceiling, a still-restrictive Selic path through 2029 with a small long-run uptick, and largely unchanged growth and exchange-rate forecasts. There were no Africa hard prints listed for the day.

This is part of The Rio Times’ daily global economic intelligence for the Latin American financial community.

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What it means

\nThe day reinforced a calmer macro setup. Europe’s headline inflation is easing, and markets are financing governments smoothly at the short end. Canada looks contained on inflation but soft on goods demand.
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\nAsia is steady: China is not pressing the credit accelerator, and Korea’s producer prices remain manageable. With U.S. markets shut, the key message was predictability—enough disinflation to keep central banks patient, but not enough to justify aggressive easing.

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