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Ahead of a crucial European Central Bank meeting, eurozone inflation stays low at 0.1 per cent

BRUSSELS – Inflation across the 19-country eurozone held steady in November at 0.1 per cent over the year, reinforcing the case for the European Central Bank to deliver a further big stimulus for the region this week.

The increase reported Wednesday by the European Union’s statistics agency was below market expectations for a modest uptick to 0.2 per cent.

Perhaps more concerning for policymakers is that the core rate, which strips out volatile prices for energy, food, alcohol and tobacco, fell to 0.9 per cent from 1.1 per cent. The market consensus was for the rate to remain unchanged.

Low inflation is the main reason why the ECB is expected to deliver another stimulus Thursday.

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This story has been corrected to show the core inflation rate fell to 0.9 per cent and did not remain unchanged.