Euro zone inflation plunged in November and unemployment jumped more than expected, boosting chances the ECB will increase the size of its interest rate cuts next week to aid a rapidly shrinking economy. Consumer price inflation in the 15-country euro area fell by 1.1 percentage points to 2.1 percent this month, the Eurostat statistics office estimated on Friday. Moreover, unemployment in the 15 nations that share the euro shot up to 7.7 percent in October - the highest level in two years - as growth dropped sharply, the EU statistics agency Eurostat said Friday. The European Central Bank wants inflation to be below, but close to, 2 percent and has signalled it has “ample” room to cut rates on Dec. 4 if inflation pressures subside. Russia raises key rate Russia on Friday announced a one percent rise in its key interest rate and allowed the ruble to weaken further, as it sought to protect itself from the worst effects of the global economic crisis. The Russian central bank raised its key refinancing interest rate to 13 percent from 12 percent to curb capital outflows that have seen investors shift tens of billions of dollars out of the country.
