Eurozone inflation stable, Italy below forecasts

In November, eurozone inflation remained stable, with Italy posting a slightly smaller increase than expected, while consumer expectations show modest future growth.

Preliminary data show Italy’s EU-harmonized inflation rose 1.1% year-on-year in November, slightly below economists’ forecasts of 1.3%. On a monthly basis, the index fell 0.2%, in line with October, confirming a steady price trend.

In France, inflation remained at 0.8%, while in Spain it eased to 3.1%, still above analysts’ expectations. Germany and Italy showed minor changes, contributing to an overall stable picture across the eurozone.

A European Central Bank survey indicates that consumer inflation expectations over the next 12 months rose slightly to 2.8%, while three- and five-year expectations remain stable. Price pressures are under control, but concerns over future unemployment increased, with the 12-month outlook at 11%.

The data support the ECB’s current approach, keeping interest rates unchanged while aiming to maintain inflation close to its 2% target without creating market turbulence.