Analysts at Nordea Markets consider a stronger-than-expected rise in the Eurozone inflation in November as a temporary climb until year-end and continue to expect more easing from the ECB next year.

• “The flash release comes with few details. The rise in this month’s numbers stems from various factors. Service sector price growth increased sharply compared to last month, and food prices provided a boost. Energy prices, on the other hand, remained a drag on headline, despite rising oil prices.
• Today’s numbers do not change our view of a next easing package from the ECB in March (10bp cut and 20bn additional QE). Inflation will remain below target for some time to come but the ECB is in a “wait and see” position to evaluate how the September package is playing out and what the next steps will be.”