Euro zone inflation inched up another tenth of a percentage point in November as food and core inflation pushed higher, providing modest comfort for European Central Bank policymakers who meet next week.
The European Union's statistics office Eurostat said consumer prices rose 0.6 per cent year-on-year in November, picking up from the 0.5 per cent in October and 0.4 per cent in September.
The increase was in line with the average expectation in a Reuters poll of 47 economists.
Energy prices were actually 1.1 per cent lower in November than 12 months earlier, compared to 0.9 per cent down in October.
Excluding the most volatile prices for unprocessed food and energy, inflation was 0.8 per cent year-on-year, from 0.7 per cent in October and the same as the level of the previous five months. The figure is the one the ECB uses as core inflation.
The European Central Bank wants a higher rate of overall inflation – close to 2 per cent over the medium term – and has been buying euro zone government bonds to inject cash into the banking system and make banks lend to the real economy. The ECB’s governing council meets on December 8th, and is expected to extend its bond-buying beyond an initial target date in March.
