The increase was driven by the price of services, which is mostly driven in turn by wages.
The rate of inflation in the wider European Union was 2.5pc.
Among EU members, Ireland had the lowest level of inflation in November, with prices up just 0.5pc last month compared with a year earlier.
In Romania prices were up 5.4pc. Belgium (4.8pc) and Croatia (4pc) also continue to experience significant price pressures.
The pick up in inflation is a reminder that the pace and scale of interest rate cuts by the European Central Bank (ECB) remains uncertain.
In the current environment of elevated uncertainty, it is prudent to maintain agility
ECB chief economist Philip Lane said there were lingering risks in the global economy which could still shift the outlook for inflation.
Wage growth, profits and geopolitical tensions could push up energy prices and freight costs, creating new upward pressure on prices, he said.
On the other hand, a protracted hit to confidence could bring down inflation, while an increase in trade friction would make the outlook more difficult to model, he added.
“In the current environment of elevated uncertainty, it is prudent to maintain agility on a meeting-by-meeting basis, and not pre-commit to any particular rate path,” Prof Lane told an event organised by analysts MNI.
“In terms of risk management, monetary easing can proceed more slowly compared to the interest rate path embedded in the December projections in the event of upside shocks to the inflation outlook and/or to economic momentum.
“In the event of downside shocks to the inflation outlook and/or to economic momentum, monetary easing can proceed more quickly,” he added.
Meanwhile, UK inflation rose to an eight-month high in November, adding to fears that the British economy will enter the new year burdened by so-called “stagflation”, anaemic growth and stubbornly high price rises.
The UK’s consumer prices index increased 2.6pc annually, from 2.3pc in October, the Office for National Statistics said, driven up by motor fuel and clothing prices.
Markets have effectively ended any expectation of the Bank of England reducing rates at its final meeting of the year. Only two cuts are expected in 2025, down from three at the start of the week.
Services inflation, closely watched by Bank of England rate-setters for signs of lingering pressures, remained stubbornly high at 5pc.
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Publish date : 2024-12-17 16:00:00
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