Eurozone: Inflation eases in November
December 17, 2018
According to complete data released by Eurostat on 17 December, harmonized inflation came in at 1.9% in November, a notch less than the preliminary estimate and below October’s 2.2%. October’s result had marked one of the highest readings seen in the past two years. Inflation sits at the European Central Bank’s target rate of near, but below, 2.0%. Lower price pressures for food, alcohol and tobacco, and energy drove November’s more moderate reading.
Annual average inflation inched up was unchanged at October’s 1.7% in November. Meanwhile, core inflation edged down to 1.1% from October’s 1.2%. On a monthly basis, harmonized consumer prices dropped 0.2% in November, the first fall in four months (October: +0.2% month-on-month).
Among the countries in the common-currency bloc, Estonia (3.2%) and Latvia (2.9%) experienced the highest inflation. On the flipside, Ireland (0.8%) and Portugal (0.9%) recorded the lowest inflation rates. Regarding the largest economies in the Eurozone, inflation fell in France (2.2%), Germany (2.3%) and Spain (1.7%) in November, but was stable in Italy (1.6%).
Eurozone Inflation Forecast
FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.7% in 2019. For 2020, panelists expect inflation to average 1.6%.