Inflation in the Euro zone reaches 2.3% in 12 months

Consumer prices in the euro region rise 2.3% in one year, as ECB maintains focus on economic growth in the face of global challenges

Consumer prices in the euro zone rose 2.3% in November compared to the previous year, the EU statistics agency Eurostat reported on Friday (29).

This number is higher than in October, which was 2%, and is also above the 2% target established by the European Central Bank (ECB).

However, the news is unlikely to stop the ECB from cutting interest rates as the institution is focused on tackling Europe’s sluggish growth.

Inflation still below 2022 peak
Energy prices fell 1.9% compared to last year, but this was offset by price increases of 3.9% in the services sector.

Underlying inflation — which excludes volatile energy, food, alcohol and tobacco prices — remained stable at 2.7% for the third consecutive month in November.

Inflation has slowed significantly from its peak of 10.6% in October 2022, when the ECB raised interest rates quickly to reduce price rises. In June, the bank began cutting rates as concerns about economic growth intensified.

Markets have already priced in a 25 basis point reduction in the benchmark interest rate, currently at 3.25%, by the ECB in December.

With information from AFP, Reuters, AP*