Newsletters
Eurozone inflation rose slightly in November to 2.2% every year, driven by higher service costs and a slower decline in energy prices, according to Eurostat.
Preliminary figures showed that consumer prices across the 20-nation currency bloc edged higher in November. Among the largest Eurozone economies, inflation trends varied: Germany recorded a 2.6% annual increase, while Spain saw a sharper rise at 3.1%. In contrast, France and Italy reported more subdued inflation rates of 0.8% and 1.1%, respectively.
The highest annual increase among major components was recorded in the service sector, where inflation accelerated slightly to 3.5% year-on-year in November, up from 3.4% in October.
Prices for food, alcohol, and tobacco rose by 2.5%, while non-energy industrial goods saw a more modest increase of 0.6%.
Energy prices, while still declining, fell at a slower pace compared to previous months, posting a year-on-year drop of 0.5%.
Core inflation—which excludes energy, food, alcohol, and tobacco—held at 2.4% annually, unchanged from the previous month and in line with market forecasts. Every month, core prices declined by 0.5%.
The latest data are likely to reinforce expectations that the European Central Bank will keep its key interest rates unchanged, as inflation remains slightly above the 2% target.
The ECB has held rates steady in October, following the end of a prolonged tightening cycle in June aimed at curbing inflation, which had climbed above 10% in 2022.
The ECB’s next monetary policy meeting is scheduled for December 18, where officials are set to reassess the inflation trajectory and economic outlook across the Eurozone.
1 min read
3 min read
