Eurozone inflation rose slightly in November, nudging above the European Central Bank’s two-percent target, according to official data released on Tuesday.
Consumer prices increased by 2.2 percent year-on-year, a marginal uptick from October and higher than the 2.1 percent forecast by analysts surveyed by Bloomberg.
The modest rise was largely driven by energy prices, which continued to decline but at a slower pace than in previous months. Service prices also increased, climbing 3.5 percent compared to 3.4 percent in October.
Core inflation — excluding energy, food, alcohol and tobacco — held steady at 2.4 percent across the euro area’s 20 member states, matching analyst expectations.
READ ALSO: UK Inflation Holds Steady in August, Dampening Hopes of Rate Cuts
The latest figures are expected to strengthen projections that the European Central Bank will maintain interest rates at current levels. The ECB paused its rate-cutting cycle in June and kept its benchmark rate unchanged for a third consecutive meeting in October, following a sharp drop in inflation from more than 10 percent in 2022.
The ECB’s governing council convenes next on December 18 to determine its next monetary policy steps.