Inflation in Europe falls to 2.4%. It shows interest rates are packing a punch

Europeans are again seeing some relief as inflation dropped to 2.4% in November, the lowest in more than two years. Plummeting energy costs have eased a cost-of-living crisis but higher interest rates are squeezing the economy’s ability to grow. The European Union’s statistics agency said Thursday that inflation for the 20 countries using the euro currency was down from an annual 2.9% in October. It’s a far cry from the peak 10.6% in October 2022 as the energy crisis left households and businesses struggling to make ends meet across Europe. The figure is close to the European Central Bank’s target of 2% after it unleashed a rapid series of interest rate hikes. But the tradeoff is stalled economic growth.