On Wednesday, preliminary data from the European Commission’s statistics arm, Eurostat, revealed that Eurozone inflation dropped by more than expected to 10.0 per cent in November. It is down from economists’ forecasts of 10.4 per cent and below a revised reading of 10.6 per cent Y-o-Y in October.

The fall also breaks a 12-month high for the monthly consumer price index. However, the number remains at higher levels compared to the rest of the currency area’s over two-decade history and five times the European Central Bank’s stated 2 per cent target.

European Central Bank (ECB) president Christine Lagarde has stated that controlling inflation is one of her top goals. She has hinted that policymakers will continue to increase interest rates even if at the expense of broader economic activity.

Notably, the ECB has raised its rate on bank deposits by 200 basis points (BP) to 1.5 per cent over the past three months to cool down red-hot demand.