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Euro zone inflation rate hits highest since April 2014

Krisztian Bocsi | Bloomberg | Getty Images

Inflation in the euro zone rose by 0.6 percent in November, up from 0.5 percent in the previous month, according to official flash estimates by the EU's statistics agency.

The data released Wednesday indicated that consumer price growth was at its highest since April 2014. It showed that services should register the highest annual rate of price growth in November, followed by food.

The uptick in inflation should alleviate concerns within the European Central Bank (ECB), which is set to meet next week. Analysts expect that the ECB will announce further stimulus to try to push inflation higher as it aims to eventually reach its 2 percent target

"November's pick up in euro zone headline inflation is unlikely to deter the ECB from announcing further policy stimulus next week," Jack Allen, European economist at Capital Economics, said in a note.

Howard Archer, chief European economist at IHS Markit, warned that core inflation remains a problem. "The muted November core inflation data highlight that the ECB cannot relax on the inflation front yet, even if the headline rate looks primed to rise appreciably over the next few months."

Core inflation stood near the bottom of the 0.7 percent to 1.1 percent band that has held since May 2015.

Earlier on Tuesday, flash inflation figures for France projected an increase to 0.5 percent year-on-year in November, up from 0.4 percent in the previous month.

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