Eurozone inflation accelerated to 2.3% in November 2024, marking a rise from 2% in October. This increase was largely anticipated, with analysts predicting higher inflation due to base effects from last year’s sharp declines in energy prices, which are no longer included in the annual inflation calculation. Preliminary data showed the inflation rate aligning with market expectations, signaling ongoing economic recovery in the region.

Energy Prices and Industrial Goods

Energy prices in November fell by 1.9%, a smaller decrease compared to the 4.6% drop recorded in October. This slower decline contributed to the overall rise in inflation. Additionally, prices for non-energy industrial goods increased by 0.7%, slightly above October’s 0.5% rise. These changes reflect a modest uptick in costs for various goods, as the region navigates through ongoing economic shifts.

Services and Food Inflation Slows

In contrast, inflation in services and food prices showed signs of easing. The inflation rate for services dropped to 3.9% in November, down from 4% in October, indicating a cooling in the cost of services. Similarly, inflation for food, alcohol, and tobacco decreased slightly to 2.8%, from 2.9% in the previous month. These slower increases in key sectors helped temper the overall inflation figure.

Core Inflation Steady at 2.7%

Core inflation, which excludes volatile items like food, energy, alcohol, and tobacco, remained unchanged at 2.7% in November. This steadiness defied expectations that it would rise to 2.8%. On a monthly basis, the Consumer Price Index (CPI) fell by 0.3%, following a 0.3% increase in October. Despite the fluctuations in various sectors, core inflation showed stability, signaling a balanced economic outlook for the Eurozone.