Inflation in the Eurozone crept up again in November by a tenth of one percent as food prices rose and core inflation grew.
This should please the European Central Bank, which wants a higher overall level of inflation, at around 2% in the medium term. It has been buying eurozone government bonds to inject cash into the banking system and make banks lend to the real economy.
Consumer prices rose 0.6% year-on-year, even though energy prices actually fell by 1.1%. Stripping out volatile energy and unprocessed food from the figures gave an overall inflation figure of 0.8%, a tenth of a point higher than October.
The ECB’s Governing Council meets next Thursday, Dec. 8, and is expected to extend its bond-buying beyond its initial March cut-off date.