Euro Zone Inflation Sticks at 0.1%, All Eyes on ECB

Euro zone inflation is expected to hold steady in November, unchanged from the previous month. But with little to no growth, pressure remains on the European Central Bank to increase its massive bond-buying program to boost prices at its monthly meeting on Thursday.

Eurostat said consumer prices in the 19 countries sharing the euro stayed at 0.1 percent in the year to November in its flash estimate, as lower oil prices helped cap any growth in inflation in the currency bloc.

The unchanged headline rate of 0.1 percent is a downside surprise, given that energy inflation was always likely to rise on the anniversary of a big drop in oil prices November last year. But this was offset by a slight fall in food inflation and, more notably, a drop in core inflation from October’s 1.1 percent to 0.9 percent.

CNBC

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.