Eurozone inflation is low but bankers are not happy

Eurozone inflation rose to 1 percent on an annual basis in November, from 0.7 percent in October, which was the lowest level in three years. The European statistics agency Eurostat reported this on the basis of a provisional figure.

Economists generally expected an inflation rate of 0.9 percent. Core inflation, without the influence of the sharply fluctuating prices for energy and food and beverages, rose to 1.3 percent from 1.1 percent in the previous month. That is the highest level for core inflation in seven months.

ING economist Bert Colijn wrote in a response that especially higher prices in the services sector are driving inflation. The question now is whether there will be a continuing rise in inflation. Rising inflation is welcome news for the European Central Bank (ECB). The ECB is aiming for inflation of almost 2 percent.

French inflation rose to 1 percent on an annual basis in November, from 0.8 percent in October. The French statistical office announced this on the basis of a provisional estimate.

The figure corresponds to the average expectation of economists. French consumer prices rose by 0.1 percent on a monthly basis. Based on the European harmonized measurement method, inflation was measured in France at 1.2 percent on an annual basis and 0.1 percent on a monthly basis.

The statistics office also provided definitive figures on the growth of the French economy in the third quarter. The growth remained unchanged at 0.3 percent on a quarterly basis. On an annual basis, growth was revised upwards to 1.4 percent, from a previously reported 1.3 percent.

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