ECB will have new inflation data to ponder this week

Eurozone data for November, due on Thursday, will probably show inflation at 2.7%, the lowest since July, 2021

European Central Bank president Christine Lagarde said: 'We’re certainly not declaring victory'. Officials on both sides of the Atlantic are being cautious despite the apparent success of disinflation policies. File picture

Inflation gauges in the US and eurozone are set to show the smallest annual increases since early or mid-2021, reinforcing sentiment that interest rates will not be raised again.

The US Federal Reserve’s preferred measures will be published on Thursday, with the personal-consumption expenditures price index rising 3.1% in October from a year ago. The core measure, which excludes food and fuel and is considered a better gauge of underlying inflation, is expected to have climbed to 3.5%.