Big euro zone inflation drop bolsters hopes for smaller ECB hike

Euro zone inflation eased far more than expected in November, raising hopes that sky-high price growth is now past its peak and bolstering, if not outright sealing the case for a slowdown in European Central Bank rate hikes next month.

Consumer prices in the 19 countries sharing the euro grew by 10.0% this month after a 10.6% increase in October, coming in well below expectations for 10.4% in a Reuters poll of analysts.

The overall picture is more nuanced, however, as energy prices accounted for the bulk of the slowdown while underlying price growth remained stubbornly high and food prices, a key worry, continued to rise, Eurostat data showed on Wednesday.