Euro zone inflation rate eases slightly to 10% as surge in energy prices slows

Inflation in the euro zone reached 10% in November adding further pressure on the European Central Bank to deal with a recent record rise in consumer prices.

Prices have been sky high across the 19-member region for several months. Inflation actually rose above the 10% mark last month, highlighting the severity of the cost-of-living crisis in the bloc. It has now come down 0.6 percentage points.

Preliminary data Wednesday from Europe's statistics office showed headline inflation at an annual 10% this month. Energy and food costs have contributed the most to higher inflation.

Speaking earlier this week, ECB President Christine Lagarde said: "We expect to raise rates further to the levels needed to ensure that inflation returns to our 2% medium-term target in a timely manner."

The central bank has raised rates three times this year and it is expected to do so again in December. However, there is a huge uncertainty as to how many rate hikes the ECB will announce next year. Some economists argue that officials will have to take a break to allow for the real economy to react to the higher rates, while others believe inflation is at such high levels that it needs further rate moves.

The ECB estimated in September that annual headline inflation will reach 8.1% for 2022 and 5.5% in 2023. These figures are expected to be revised upward when the central bank meets in December.

This is a breaking new story and it is being updated.