Inflation in the eurozone rose further above the European Central Bank’s target in the final month of 2024, although that is unlikely to dissuade policymakers from lowering borrowing costs again this month to support a faltering economy.

Euro-area inflation accelerated last month, supporting the European Central Bank’s gradual approach to reducing interest rates, without derailing them altogether.

Euro zone households increased their inflation expectations in November, a European Central Bank poll showed on Tuesday, suggesting years of high inflation were still weighing on households' psychology.