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Euro zone returns to inflation in Nov, 0.6 pct y/y

Published 11/30/2009, 05:03 AM
Updated 11/30/2009, 05:06 AM
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BRUSSELS, Nov 30 (Reuters) - The euro zone returned to inflation with stronger-than-expected price growth in November after five straight months of falling consumer costs, data from the European Union statistics agency showed on Monday.

Consumer prices in the 16-country area rose 0.6 percent year-on-year after a 0.1 percent fall in October, Eurostat said in a preliminary estimate. Economists polled by Reuters had on average expected a 0.4 percent price increase.

No breakdown was available with the flash estimate, but economists had expected a rebound in inflation mainly due to higher oil prices.

In November 2008 the cost of a barrel of crude oil averaged roughly $60, while this month it had not gone below $72.

The European Central Bank wants inflation to be just below 2 percent, and economists have said that in the absence of inflationary pressure it will keep interest rates at a record low of 1 percent well into 2010. (Reporting by Jan Strupczewski, editing by Dale Hudson) ((jan.strupczewski@reuters.com; +32-2-287 6837; Reuters messaging: jan.strupczewski.reuters.com@reuters.net))

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