From Morningstar: 2024-11-26 08:49:28

Eurozone inflation is expected to rise to 2.4% in November, with core inflation stable at 2.9%. Services were the biggest contributors to inflation in October. Inflation is projected to start falling again from January, with a rebound expected in November. Goldman Sachs predicts headline inflation to hit 2.34% in November.

Economic growth concerns outweigh inflation worries in the eurozone. Inflation is expected to stabilize, but risks remain due to weak growth prospects. Trump’s policies could further pressure the European economy. If the US implements trade barriers, China may flood Europe with low-cost products, impacting growth.

The ECB is expected to cut interest rates in December, with debates on the extent of the cut ongoing. A 25 basis point cut is likely, but a significant miss on inflation data could lead to a 50 basis point cut. Markets are pricing in a 50 basis point cut after weak PMI data. The ECB may proceed cautiously under Lagarde’s leadership, with an expected rate between 1.5% and 1.75% by the end of 2025.



Read more at Morningstar: Eurozone Inflation: What to Expect From November’s Data