Eurozone inflation slightly rebounded in November, supporting the European Central Bank to hold steady in December.

Inflation in the Eurozone has slightly rebounded, supporting the European Central Bank's view that there is almost no reason to further lower borrowing costs. Consumer prices rose by 2.2% year-on-year in November, higher than October's 2.1%, and slightly above the median expectation of economists surveyed by Bloomberg. Core inflation, which excludes food and energy prices, remained at 2.4%, while the closely watched service sector inflation edged up slightly. After soaring post-pandemic, Eurozone inflation has been close to the European Central Bank's 2% target for nine consecutive months, with potential pressures gradually fading, albeit at a slower pace. However, due to different economic conditions and base effects, inflation among member countries varies significantly. Reports from various countries show accelerated inflation in Germany, stable inflation in France, and slowing inflation in Spain and Italy.