Inflation edges higher in the Eurozone while unemployment rate holds steady

Eurozone inflation was 2.2% in November, accelerating 0.1 percentage points from the previous month.

Among the major economies, Germany’s inflation rate stood out, rising to 2.6% year-on-year, its highest pace in nine months.

Meanwhile, data from the Eurozone labour market shows that the unemployment rate was unchanged in October at 6.4%, a level that has now persisted since May.

With inflation still running above with the European Central Bank’s target, we anticipate the benchmark interest rate to be held at 2% at the upcoming meeting in December.