Inflation in the eurozone in November slowed to the lowest since July 2021

According to preliminary data from Eurostat, inflation in the eurozone in November 2023 amounted to 2.4% in annual terms. This indicator has become the lowest since July 2021. In October, inflation was 2.9%. 

The current inflation rate was lower than the forecast of analysts, who expected an indicator of 2.7%.

It is noted that the decline in energy prices continued in November – the indicator fell by 11.5% year-on-year, while in October the drop was 11.2%. The growth rates of food, alcohol and tobacco prices also slowed, reaching 6.9% and falling from 7.4% in the previous month. The indicator for the service sector fell to 4% from 4.6%.

Core inflation (CPI Core), excluding the cost of food and energy, also showed a slowdown – to 3.6% in November from 4.2% in October, which was below the market forecast of 3.9%.

On a monthly basis, consumer prices in the eurozone decreased by 0.5%, which is the maximum drop since January 2020. This indicator has not decreased since July of this year, when an increase of 0.1% was recorded.