Eurozone inflation up less than expected, unemployment at lowest since January 2009
Inflation in the eurozone ticked higher in November, according to the latest data from Eurostat, while the unemployment rate unexpectedly fell in October.
According to a flash estimate, inflation rose to 1.5% this month from 1.4% in October, but was below the 1.6% analysts had pencilled in. Inflation remains within the European Central Bank's target of close to but below 2%.
Energy prices were up 4.7% compared to a 3% increase in October, while food, alcohol and tobacco prices rose 2.2% compared to a 2.3% jump the month before.
Meanwhile, core inflation - which excludes energy, food, alcohol and tobacco - came in at 0.9%, in line with the month before.
Separate figures from Eurostat showed the unemployment rate in the euro bloc fell to 8.8% in October from 8.9% in September and 9.8% in October 2016. This marked the lowest rate recorded since January 2009 and beat expectations for an unchanged reading.
In the EU-28 group of nations, the unemployment rate declined to 7.4% from 7.4% in September and 8.3% in October last year, marking the lowest rate since November 2008.
Jennifer McKeown, chief European economist at Capital Economics, said: "October’s fall in eurozone unemployment will offer some reassurance to the ECB as it prepares to reduce the pace of asset purchases, but the still-low rate of core inflation in November supports its cautious approach.
"There are reasons to expect the core rate to pick up a little in the months ahead. The economy is performing very well and spare capacity should be eliminated next year."