In November, the annual inflation rate in the eurozone fell for the first time since mid-2021 with energy prices falling. However, the slowdown is not likely to prevent the European Central Bank from raising interest rates further.

Consumer price inflation in the 19 countries that share the euro has risen since Russia's invasion of Ukraine and the Kremlin's decision to arm the country's vast energy reserves to undermine European support for Kiev. Indeed, because of rising energy prices, the inflation rate in the eurozone has continued to rise even as American inflation has fallen for four consecutive months starting in July. This prompted the ECB to raise its key rate more sharply than at any time in its history.

Data from the European Union Statistics Agency published on Wednesday showed that consumer prices in November were 10% higher than a year earlier, down from the 10.6% annual inflation rate recorded in October when energy prices fell. Economists, for their part, expected a fall of 10.4%. The inflation rate last fell in June 2021, but that proved to be a brief interruption in its long rise.