Eurozone inflation in November exceeded expectations at 2.2% year over year, up from October’s 2.1%. Core inflation remained at 2.4%, driven by services inflation. ECB rate cut likelihood in December is low. Services inflation rose to 3.5% annually in November, while food, alcohol & tobacco increased by 2.5%.

With inflation near ECB’s target, further rate cuts are unlikely. Core inflation at 2.4% may decrease towards 2%. Market bulls may need to wait until early 2026 for another rate cut. Mixed inflation rates across Eurozone countries range from 0.2% in Cyprus to 4.7% in Estonia. German inflation rose to 2.6%.

Read more at Morningstar: Eurozone Inflation Higher Than Expected in November