Eurozone inflation accelerates to 2.3% in November

European statistics agency Eurostat said annual inflation in the euro zone accelerated to 2.3% in November, again exceeding the European Central Bank’s 2% target.

Economists had forecast an annual rate of 2.3% for the month, up from 2% in October, according to Reuters.

Goods prices in the bloc have risen for two straight months after falling to 1.7% in September, as expected, due to easing deflationary pressures from energy prices.

Core inflation, which excludes volatile energy, food, alcohol and tobacco prices, held steady at 2.7% for the third straight month in November.

Core inflation was supported by steady service sector inflation, which eased slightly to 3.9% in November from 4% the previous month.

Markets have fully priced in a 25 basis point interest rate cut by the European Central Bank in December, which would be the institution’s fourth cut this year.

Speculation that the central bank might be pushed into a deeper 50 basis point cut has faded since last month, after a slight improvement in the eurozone’s weak growth outlook and a rebound in inflation.