Eurozone Inflation

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Eurozone: Inflation is modestly higher in November

November 16, 2015

More complete data released by Eurostat on 16 December showed that harmonized consumer prices decreased 0.1% in November over the previous month, which contrasted the 0.1% increase observed in October. The monthly increase drop reflected lower prices for fresh food, particularly for vegetables, as well as for restaurants and cafes. In addition, energy prices continued to exert downward pressures on consumer prices.

Revised data showed that inflation in the Eurozone was revised up from the flash estimate. HICP inflation increased to 0.2% in November (October: 0.1% year-on-year), which was revised up from the 0.1% rise showed in the 30 November preliminary estimate. Inflation is still well below the European Central Bank target of close to but below 2%.

At a country level, 10 of the 19 Eurozone economies showed inflation rates equal to or above the regional average. Belgium (1.4%), Malta (1.3%) and Portugal (0.6%) were the economies with the highest rates. In contrast, Cyprus (-1.5%), Slovenia (-0.9%) and Lithuania (-0.5%) were the economies that registered annual declines in HICP consumer prices.

Among the largest economies in the Eurozone, inflation was higher in Germany, while it moderated in France and Italy. In Spain, the annual variation in consumer prices was negative in November for a third consecutive month.

FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.0% in 2016, which is down 0.1 percentage points from last month’s forecast. For 2017, panelists expect inflation to average 1.5%.


Author:, Senior Economist

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Eurozone Inflation Chart


Euro Inflation by country November 2015

Note: Year-on-year var. of harmonized consumer price index (HICP) in %.
Source: Eurostat


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