Inflation in Europe falls to 2.4%. It shows interest rates are packing a punch
Europeans are again seeing some relief as inflation dropped to 2.4% in November, the lowest in more than two years
LONDON (AP) — Europeans again saw some relief as inflation dropped to 2.4% in November, the lowest in more than two years, as plummeting energy costs have eased a cost-of-living crisis but higher interest rates squeeze the economy's ability to grow.
Inflation for the 20 countries using the euro currency fell from an annual 2.9% in October, according to numbers released Thursday by Eurostat, the European Union's statistics agency. It's a far cry from the peak of 10.6% in October 2022 as an energy crisis left Europe's households and businesses struggling to make ends meet.
The new figure is close to the European Central Bank's inflation target of 2% following a rapid series of interest rate hikes dating to summer 2022. But the tradeoff is stalled economic growth.
It raises the expectations that the ECB will hold rates steady for the second time in a row at its next meeting Dec. 14.
