Inflation in the eurozone rebounded to 2.2% in November, less than previously estimated, according to the latest revised data from Eurostat. This was up from 2.0% in October, and down from 2.4% a year earlier.
The single currency bloc’s consumer price index (CPI) inched back up last month from the 2.3% figure published at the end of November.
As per a Reuters poll, the harmonised data on November consumer prices in the 19-nation eurozone was expected to be unchanged from October at 2.3%.
Meanwhile, annual inflation in the European Union (EU) came in at 2.5% last month, up from 2.3% in October and down from 3.1% during the same period a year ago. This was also after hitting a three-year low of 1.7% in September.
Core inflation, which strips out volatile energy, food, alcohol and tobacco prices and is a key indicator for the central bank in deciding whether to cut rates, remained stable at 2.7%.
The lowest annual rates were registered in Ireland (0.5%), Lithuania and Luxembourg (both 1.1%). The highest annual rates were recorded in Romania (5.4%), Belgium (4.8%) and Croatia (4.0%).
Compared with October 2024, annual inflation fell in four member states, remained stable in three and rose in 20.
The highest contribution to the annual euro area inflation rate came from services, which saw a 1.74 percentage point rise, followed by food, alcohol & tobacco (up 0.53 percentage points), non-energy industrial goods (+0.17 pp) and energy (-0.19 pp).
It comes after the European Central Bank (ECB) cut interest rates again last week for the fourth time this year, with president Christine Lagarde indicating that further cuts will follow.
Read more: UK inflation rises to 2.6% in November
Policymakers cut the deposit rate from 3.25% to 3%, having begun cutting from a record high of 4% in June. This is the rate for banks to make overnight deposits and also serves as the main tool for the ECB to steer its monetary policy stance.
The step was widely anticipated by the market, with further cuts on the horizon in 2025.
The ECB predicts that the eurozone economy will grow by just 1.1% in 2025, down from its September estimate of 1.3%. It then forecasts growth of 1.4% in 2026, down from a previous projection of 1.5%. It expects growth of 1.3% in 2027.
