What is the expected inflation rate for the Eurozone in November?

Euro-zone inflation is expected to be around 2.1% in November, with the underlying measure at 2.4%.

Will the European Central Bank (ECB) change interest rates in December?

Current inflation readings suggest the ECB may hold interest rates steady in December due to a lack of clear consensus on future economic direction.

What are the differing economic forecasts for the Eurozone's inflation?

Some economists predict inflation will slow, supporting rate cuts, while others anticipate stronger growth and inflation, favoring prolonged rate holds or even a hike.

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Eurozone Inflation Steady: ECB Policy on Hold?

30 Nov

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Summary

Euro-zone inflation is projected to remain near 2% in November.
Underlying inflation is expected to stay at 2.4% this month.
Mixed national inflation data may lead to an ECB holding pattern.

Eurozone Inflation Steady: ECB Policy on Hold?

Euro-zone inflation is projected to remain close to the European Central Bank's 2% target in November, with most economists expecting a reading of 2.1%. The core inflation rate, excluding volatile energy prices, is forecast to stay at 2.4%. This steady inflation data is likely to encourage the ECB's Governing Council to maintain current interest rates at their December meeting.

The central bank finds itself in a period of observation, with no clear consensus on the next monetary policy move. Recent national inflation reports presented conflicting trends: stronger-than-expected figures from Germany and Spain were offset by weaker data from France and Italy. This ambiguity could lead policymakers to maintain their current stance, focusing instead on crucial long-term economic projections extending to 2028.

Economists hold divergent views on the future inflation trajectory and potential ECB actions. While some predict a slowdown in price growth, suggesting a case for future rate cuts, others foresee stronger economic growth and inflation, supporting a prolonged period of unchanged rates, or even a potential hike. Vice President Luis de Guindos has indicated a limited risk of inflation undershooting the target.

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