Eurozone: Inflation inches up in November
December 18, 2017
Complete data released by Eurostat on 18 December confirmed that harmonized inflation was 1.5% in November, a notch above October’s 1.4% reading. The result was in line with the preliminary estimate and is below the European Central Bank’s target of close to, but below 2.0%. According to Eurostat, prices for fuels had the largest upward impact, while the biggest downward impacts came from prices for telecommunication and garments. Annual average inflation also inched up to 1.5% in November, a multi-year high (October: 1.4%).
Core inflation was unchanged at 1.1% in November. Meanwhile, harmonized consumer prices rose 0.1% from the previous month (October: +0.1% month-on-month).
Looking at the countries in the common-currency bloc, the lowest inflation rates were recorded in Cyprus (0.2%), Ireland (0.6%) and Finland (0.9%). On the other side of the spectrum, the Baltics saw the highest inflation with Estonia leading the pack (4.5%). Regarding the largest economies in the Eurozone, Germany (1.8%) and Spain (1.8%) logged the highest inflation rates. Meanwhile, inflation was below the region’s average in France (1.3%) and Italy (1.1%).
Eurozone Inflation Forecast
FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.4% in 2018, which is unchanged from last month’s forecast. For 2019, panelists expect inflation to average 1.6%.