Eurozone inflation held steady at 2.1% in November, revised data showed on Wednesday, December 17, reinforcing expectations that the European Central Bank would keep rates unchanged this week.
The initial estimate by the EU’s statistics agency had shown annual inflation in the single currency area ticking up to 2.2% – moving away from the bank’s target of 2%.
The revision reflects smaller-than-expected November price increases for some components, notably unprocessed food and industrial goods, excluding energy. Core inflation – which strips out volatile energy and food prices and is closely watched by analysts – was confirmed at 2.4% on an annual basis, unchanged from October.
The updated figures showing eurozone inflation still in check will bolster economists’ forecasts the ECB is set to hold rates steady at its upcoming policy meeting on Thursday. Following a year-long series of cuts, the central bank for the 20 countries that use the euro has kept its key deposit rate at 2% since July.
Eurozone inflation has eased dramatically from the record 10.6% reached in October 2022 – fueled by soaring energy costs triggered by the war in Ukraine.