Euro area inflation rate revised slightly lower to 2.2%

The annual inflation rate in the Eurozone edged up to 2.2% in November 2024, from 2% in October, though it remained below the preliminary estimate of 2.3%.

Euro area inflation rate revised slightly lower to 2.2%

This year-end increase was anticipated, driven by base effects as last year’s sharp declines in energy prices no longer influence the annual comparisons. Energy prices fell at a slower pace (-2% vs. -4.6% in October, compared to -1.9% in the preliminary estimate), while costs for non-energy industrial goods increased slightly more (0.6% vs. 0.5%, compared to 0.7% in the initial estimate). Conversely, inflation eased for services (3.9% vs. 4%, in line with the preliminary estimate) and food, alcohol, and tobacco (2.7% vs. 2.9%, below the 2.8% earlier estimate). Month-on-month, the Consumer Price Index (CPI) declined by 0.3%, consistent with the advance estimate.

Core inflation remains unchanged

Meanwhile, annual core inflation, which excludes volatile items such as energy, food, alcohol, and tobacco, remained steady at 2.7% in November 2024, matching both the flash estimate and the previous two months, and marking the lowest rate in five months. On a monthly basis, core consumer prices dropped by 0.6%, in line with preliminary estimates, following a 0.2% increase in October.