Eurozone inflation edged up to 2.2 percent in November, slightly above the European Central Bank’s (ECB) 2 percent target, according to official data released on Tuesday. The modest rise was mainly driven by energy prices, which continued to fall but at a slower pace than the previous month. Service prices also increased slightly, rising 3.5 percent after a 3.4 percent gain in October.
Consumer prices were up 2.2 percent year‑on‑year, missing analysts’ expectations of a steady 2.1 percent, as surveyed by Bloomberg. Core inflation—excluding volatile energy, food, alcohol and tobacco—remained unchanged at 2.4 percent across the 20 euro‑area countries, in line with forecasts.
The ECB has been watching inflation closely since ending a long cycle of rate cuts in June. The latest figures are likely to reinforce expectations that the central bank will keep interest rates unchanged, as it has done for three consecutive meetings, including the most recent decision in October. This stance follows a decline in inflation from over 10 percent in 2022 to around the bank’s 2 percent target.
The ECB’s governing council will meet again on 18 December to decide on rates. The outcome will be closely watched for its implications for eurozone growth and stability. While the central bank aims to achieve price stability, it also seeks to support economic activity. The current inflation rate, driven by energy and services, suggests a gradual recovery in the eurozone economy. However, the ECB must balance monetary policy to keep inflation in check while fostering growth. The latest data underscore the need for continued monitoring and careful decision‑making as the ECB prepares for its next meeting, with the region’s economic stability and growth prospects hanging in the balance.
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