Euro zone inflation up a notch to 2.2% in November, flash data shows

Euro zone inflation stood at 2.2% in November, marking a slight rise from the previous month, flash data from data agency Eurostat showed Tuesday.

The latest consumer price index reading is just a shade above the European Central Bank’s 2% target. Economists polled by Reuters expected a reading of 2.1% for the twelve months to November.

Looking at the main components of euro area inflation, services is expected to have the highest annual rate in November, at 3.5% compared with 3.4% in October, Eurostat said.

Core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, was at 2.4% in November, unchanged from the previous month.

The ECB held its key deposit facility rate at 2% for the third consecutive time in late October, having last cut rates in June.

The trim, which coincided with euro zone inflation hitting the ECB’s target rate of 2%, was part of a rate-cutting cycle that has brought rates down from last year’s record high of 4%.