Frankfurt (Reuters)
Eurozone inflation fell much more than expected in November, fueling hopes that the European Central Bank will ease the pace of rate hikes at next month’s meeting.
Consumer prices in the 19-nation single currency rose 10% this month after rising 10.6% in October. The increase was much lower than the expectations of analysts polled by Reuters at 10.4%.
Data released yesterday by the European Union’s statistics office “Eurostat” showed the overall picture is more accurate, and indicated that energy prices accounted for most of the slowdown, while inflation continued. food prices, which is of great concern accelerate.
This year, the European Central Bank raised interest rates at its fastest pace ever to fight inflation, which remains more than five times its target. It is likely to announce a series of hikes in the coming months, as taming of high prices could take years.
