Eurozone: Inflation drops to lowest level in two years
December 14, 2012
In November, consumer prices fell 0.2% over the previous month, which contrasted the 0.2% rise recorded in October. As a result of the monthly drop, annual headline inflation dropped from 2.5% in October to 2.2% in November, the lowest level in two years.
The core inflation index, which does not include prices for energy, fell 0.1% over the previous month (October: +0.3% month-on-month). However, annual core inflation was unchanged at October's 1.6%.
At a country level, 10 out of the 17 Eurozone economies posted annual inflation rates equal or above the regional average. Estonia (3.8%) and Malta (3.6%) recorded the highest annual inflation rates. At the other end of the spectrum, inflation was lowest in Greece (0.6%) and Cyprus (1.4%). Among the major Eurozone economies, inflation was above the regional average in Italy (2.6%) and Spain (3.0%), whereas it was below it in France (1.6%) and Germany (1.9%).
Author: Armando Ciccarelli, Head of Data Solutions