Inflation across the 19-country eurozone held steady in November at 0.1% over the year, reinforcing the case for the European Central Bank to deliver a further big stimulus for the region this week.
The increase reported Wednesday by the European Union’s statistics agency was below market expectations for a modest uptick to 0.2%.
Perhaps more concerning for policymakers is that the core rate, which strips out volatile prices for energy, food, alcohol and tobacco, fell to 0.9% from 1.1%. The market consensus was for the rate to remain unchanged.
Low inflation is the main reason why the ECB is expected to deliver another stimulus Thursday.