Three highlights of the article:
1. Euro zone inflation rose to 2.3% in November, surpassing the European Central Bank’s 2% target, following two consecutive months of increases.
2. Core inflation, excluding volatile items, held at 2.7% for a third straight month in November, supported by services inflation.
3. Markets have priced in a 25-basis-point interest rate cut from the ECB in December, with speculation of a larger cut fading due to improvements in the euro area growth outlook and rebounding inflation.
Summary:
The article discusses how euro zone inflation increased to 2.3% in November, exceeding the European Central Bank’s target of 2%. Core inflation, excluding volatile items, remained steady at 2.7%, driven by services inflation. Markets expect a 25-basis-point interest rate cut from the ECB in December, with speculation of a larger cut diminishing due to improving economic conditions.
Editorial content by Blake Sterling
