Inflation in Europe falls to 2.4% as interest rates pack a punch. But the economy has stalled

By COURTNEY BONNELL
AP Business Writer

LONDON (AP) — 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. That’s close to the the European Central Bank’s target of 2% after a rapid series of interest rate hikes. It raises expectations that the ECB would hold rates steady for the second time in a row at its meeting next month. While inflation is down, economic growth has stalled.