Inflation stabilized in the euro zone during November.. Will interest hikes stop?

Stabilized Inflationin Eurozone during the month of November at 2.1% on an annual basis, according to a new estimate issued by a body "Eurostat" Statistics, which strengthened expectations that the European Central Bank would stop raising Interest rates On the eve of its meeting scheduled to discuss monetary policy.
On Wednesday, the European Statistical Office lowered its preliminary estimate issued at the beginning of December, which indicated a slight rise in inflation during the month of November to reach 2.2% on an annual basis.
This adjustment is mainly due to a slight decrease in the prices of unprocessed food and manufactured goods (excluding energy) compared to the initial estimates.
As for core inflation, adjusted for fluctuations in energy and food prices, which is the reference standard for experts, it stabilized at 2.4% on an annual basis, unchanged from the previous month.

Interest Rate Review

This is likely to reinforce the second estimate issued by "Eurostat" Economists’ expectations, as the European Central Bank meets on Thursday to review interest rates.
They expected the central bank to maintain key interest rates, extending the long pause that began this summer, with the deposit interest rate remaining at 2% since July.

This pause comes after a year of lowering interest rates in conjunction with lower inflation in Europe.

Lower Inflation

In the euro zone, inflation has declined significantly since reaching its highest level ever at 10.6% on an annual basis in October 2022, amid a sharp rise in energy prices linked to the war in Ukraine.
This broad decline in inflation, which returned to near the target rate of 2% set by the European Central Bank, is what prompted the bank to cut key interest rates 8 times between June 2024 and June 2025.

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