World Economy

Eurozone Inflation Up

Eurozone Inflation UpEurozone Inflation Up

Inflation in the eurozone in November wasn’t as sluggish as initially estimated, data showed on Wednesday, but deflation fears are still likely to persist in coming months, analysts said, MarketWatch reported. Eurostat said its consumer-price index for the currency union rose 0.2% last month, up from the flash reading of 0.1% and beating analyst expectations. The 0.2% marks the highest level since August, but is still significantly below the European Central Bank’s inflation target of below, but close to, 2%. In an effort to fight off low inflation and weak growth in the eurozone, the ECB in early December decided to cut interest rates further and extend the length of its €60 billion ($65.56 billion) a month quantitative easing program. However, the measures underwhelmed investors, who were hoping for more aggressive stimulus and thus keeping alive anticipation of more easing in 2016. Inflation across most economies have been slammed sharply lower by a significant rout in oil prices.