Eurozone consumer prices rose 2.3% year-on-year in November, mostly due to last year's energy price volatility, but core inflation came in lower than expected.
The ECB's key focus is on the underlying inflation trends, particularly as services inflation remains negative at -0.9%, leading to a yearly print at 3.9%.
Despite mixed signals in inflation data, market expectations for ECB rate cuts remain unchanged, with analysts favoring a modest 25bp cut in December.
The economy shows no signs of collapsing but uncertainty remains regarding neutral rates, indicating no urgent need for aggressive rate cuts at this point.
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