Eurozone inflation rose unexpectedly to 2.2% in November from the month prior, according to flash data from Eurostat.
The latest data shows that inflation in the Eurozone is just above the European Central Bank’s target of 2%, and came in higher than market expectations of 2.1%.
Underlying figures excluding volatile food and fuel prices held steady at 2.4% on continued quick price growth in services, but muted figures for durable goods.
Services are expected to have the highest annual rate in November at 3.5% compared to 3.4% in October, according to Eurostat.
The ECB held its key deposit facility rate at 2% for the third consecutive time in late October, having last cut rates in June.
The Eurozone hitting the 2% inflation target was part of a rate-cutting cycle that brought rates down from last year’s record high of 4%.
Natural gas prices are currently 40% lower than a year ago, and crude oil has decreased by over 10%, setting the scene for more energy deflation.
Energy prices were also down 0.5% in November from a year earlier, and inflation in non-energy industrial goods was 0.6%.
Following the Ocotbe trump, ECB President Christine Lagarde told CNBC that from a monetary standpoint, the economy is in a good place.
“Is it a fixed, good place? No. But we will do whatever is needed to make sure we stay in a good place,” she said.
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