Eurozone Inflation Rises Slightly to 2.2%

Eurozone inflation rose slightly in November, official data released on Tuesday showed, moving just above the European Central Bank’s (ECB) two-per-cent target.

Consumer prices increased by 2.2 per cent year-on-year, slightly higher than the 2.1 per cent forecast by Bloomberg-surveyed analysts.

The modest rise was largely driven by energy prices, which continued to decline but at a slower pace than the previous month.

Service prices also edged up, rising 3.5 per cent compared with 3.4 per cent in October.

Eurozone (News Central TV) — Eurozone inflation rises slightly to 2.2%. Credit: Euractiv

Core inflation, which excludes volatile energy, food, alcohol, and tobacco prices, remained steady at 2.4 per cent across the 20 countries using the euro, in line with expectations.

The figures are likely to reinforce market predictions that the ECB will maintain interest rates, following a lengthy rate-cutting cycle that concluded in June.

The ECB left its key rate unchanged for the third consecutive month in October, after inflation fell from over 10 per cent in 2022 to hover around the bank’s two-per-cent target.

The ECB’s governing council is scheduled to meet next on December 18 to set interest rates.

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