Eurozone inflation dropped more than expected to 2.4% in November, marking the slowest annual pace since July 2021, offering relief to consumers and raising hopes for potential interest rate cuts, The Financial Times reports.
Inflation in the eurozone dropped down from 2.9% the previous month, the decline was attributed to falling energy prices and reduced growth in food and services prices, according to Eurostat.
The drop in inflation has prompted speculation that the European Central Bank (ECB) could start cutting its deposit rate as early as April 2023. However, ECB President Christine Lagarde has cautioned against declaring victory, citing strong wage pressures and the need to meet the bank’s 2% inflation target.
