Eurozone inflation rose to 2.3% in November

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Eurozone inflation rose to 2.3 per cent in November, exceeding the European Central Bank’s target for the first time in three months.

The rise in consumer prices was in line with economists’ expectations and surpassed October’s figure of 2 per cent, which matched the ECB’s official target.

Economists say the increase was not principally caused by underlying price pressures and is unlikely to dissuade the ECB from cutting rates again.

Instead, the rise to 2.3 per cent was largely because of so-called base effects, since energy prices fell a year ago, the point of comparison when calculating annual inflation.

Most analysts and investors believe the ECB will lower borrowing costs by a quarter point to 3 per cent at its next policy meeting on December 12. Such a move would mark the central bank’s fourth rate cut this year.

In September, inflation fell below the 2 per cent target for the first time in more than three years.

This is a developing story