Euro zone inflation sinks to 2.4%, below expectations

A general view shows a weekend crowd of people visiting the Aachen Christmas market in Aachen, Germany, on November 25, 2023. (Photo by Ying Tang/NurPhoto via )

Annual inflation in the euro zone cooled to 2.4% in November from 2.9% in October, flash figures showed Thursday.

Economists polled by Reuters expected a reading of 2.7%.

Core inflation was also below expectations at 3.6%.

Officials at the European Central Bank have stressed that it is too early to declare victory over price rises in the 20-member euro zone bloc, as they monitor potential pressures from wage increases and energy markets.

Headline inflation has now cooled significantly from the peak levels of 10.6% in October 2022. Bert Colijn, senior euro zone economist at ING, said in a Wednesday note that "sluggish demand" should keep inflation on track toward 2%.

This is a breaking news story and will be updated shortly.