BRUSSELS: The eurozone annual inflation rate fell for the first time in 17 months in November as it slowed to 10 percent, official data showed on Wednesday .
Analysts had expected the inflation rate in the single currency area to fall but the drop was steeper than predicted by Bloomberg and FactSet, who foresaw 10.4 per cent.But the November figure may not convince the European Central Bank that it can stop raising interest rates, as its president Christine Lagarde has expressed scepticism that inflation has peaked.
Analysts said the reverse in the trend could see the bank go for a smaller 50-basis-point increase in rates next month rather than the expected 75-point bump. "Another episode in the energy crisis could easily push inflation back up again and core inflation usually proves to be sticky after a supply shock.""Eurozone headline inflation may now be past its peak but with core inflation unchanged in November and likely to stay well above 2 percent throughout next year, we expect the ECB to press on with another 50 basis point or even 75 basis point deposit rate hike in December," he said.