Euro zone inflation in November exceeded the European Central Bank's target of 2%, reaching 2.3%, according to Eurostat. This represents a continuation of rising prices, which have been on the rise for two consecutive months after a dip to 1.7% in September.

Core inflation, which excludes volatile categories like energy and food, remained steady at 2.7% for the third month. Services inflation slightly decreased to 3.9% from 4% in October.

Market expectations now anticipate a 25-basis-point interest rate cut from the ECB in December, which would be the fourth reduction this year. Speculation about a larger 50-basis-point cut has diminished due to recent improvements in the euro area's growth outlook and the increase in inflation. ECB officials, including board member Isabel Schnabel, have stressed the need for caution in monetary easing given these developments.