Eurozone Inflation Rises to 2.3% in November, Exceeding ECB Target

Despite the increase, the European Central Bank is expected to proceed with interest rate cuts to support weak economic growth.

Eurozone inflation climbed to 2.3% in November, up from 2.0% in October, surpassing the European Central Bank's (ECB) 2% target.
Core inflation, which excludes volatile items like energy and food, remained steady at 2.7% for the third consecutive month.
Energy prices dropped by 1.9% year-on-year, but a 3.9% rise in services costs contributed to the overall inflation increase.
The ECB is anticipated to cut its 3.25% benchmark interest rate in December, with debates ongoing about whether the reduction will be 25 or 50 basis points.
Concerns over sluggish growth, potential U.S. trade policy changes under the incoming Trump administration, and weak economic forecasts are influencing ECB policy decisions.