Inflation in the Eurozone declined more than expected in November, increasing bets that the European Central Bank may move to cut interest rates early.

The Consumer Price Index in the Eurozone fell to 2.4 percent year-on-year compared to 2.9 percent in October.

Expectations had anticipated that inflation in the single currency area would fall to 2.7 percent.

For his part, Matthew Landon, Global Market Strategist at JPMorgan, said that the decline in the Consumer Price Index sends a clear message that inflation decline continues at a rapid pace in Europe, "and more importantly, the pace is faster than market expectations or even the European Central Bank's forecasts," according to his expression.

Landon said: "The decline in inflation and the stagnant economy can justify the European Central Bank's interest rate cuts in the first quarter of next year from our viewpoint."

During November, the European Central Bank President Christine Lagarde indicated that the European Central Bank is not prepared to cut interest rates "during the next two quarters," while also warning of a possible return of inflation.

The central bank raised interest rates 10 consecutive times to tame high consumer prices but kept them unchanged for the first time in more than a year at its October meeting.

Also, with the inflation rate in the Eurozone falling to 2.9 percent in October and borrowing costs affecting the single currency area, speculation increased about when the European Central Bank might start cutting interest rates.

In her speech at an event organized by the Financial Times, Lagarde sought to dispel hopes of this happening anytime soon.

She added that if interest rates are kept at their current levels "for a sufficient period," this "will make a significant contribution to bringing inflation back to the 2 percent target over the medium term."