Year-on-year consumer prices in the eurozone rose 2.3% in November, EU statistics agency Eurostat reported Friday.

That is up from 2% in October, and also above the 2% target desired by the European Central Bank (ECB).

However, the news is unlikely to stop the ECB from cutting interest rates as it focuses on addressing Europe's sluggish growth.

Inflation remains down from 2022 peak

Energy prices fell 1.9% from a year ago, but that was offset by price increases of 3.9% in the services sector.

Core inflation — which excludes volatile energy, food, alcohol and tobacco prices — was stable at 2.7% for a third straight month in November.

Inflation has decreased significantly from 10.6% in October 2022 when the ECB raised interest rates quickly to reduce price increases. In June, the bank began lowering rates as concerns about economic growth grew stronger.

Markets have already priced in a 25-basis-point interest rate cut in the benchmark rate, currently 3.25% from the ECB in December.

lo/zc (AFP, Reuters, AP)