The annual inflation rate in the Eurozone edged up to 2.2% in November 2024, from 2% in October, slightly below the preliminary estimate of 2.3%. This modest increase was widely anticipated due to base effects, as the sharp declines in energy prices seen last year are no longer factored into the annual rate. Despite the rise, inflation figures reflect a nuanced balance between sectors experiencing upward pressure and those with easing price growth.

Energy Prices and Industrial Goods Drive the Increase

Energy prices, a key component of inflation, fell at a much slower pace in November (-2%) compared to October (-4.6%) but were marginally softer than the preliminary estimate of -1.9%. Additionally, non-energy industrial goods saw prices rise by 0.6%, up from 0.5% in October, though below the flash estimate of 0.7%. These factors contributed significantly to the overall inflation increase, signaling ongoing adjustments in production and energy markets.

Easing Inflation in Services and Food Categories

On the other hand, inflation moderated for services, which dropped slightly to 3.9% from 4%, aligning with earlier estimates. Similarly, the inflation rate for food, alcohol, and tobacco eased to 2.7% from 2.9%, below the 2.8% forecast in the preliminary reading. These declines helped temper the overall inflationary pressures, offering a mixed outlook as the year comes to an end.

Core Inflation Holds Steady

The Consumer Price Index (CPI) fell by 0.3% on a monthly basis, consistent with advance estimates, highlighting a seasonal adjustment. Meanwhile, core inflation, which excludes volatile components like energy and food, was confirmed at an annual rate of 2.7%, matching the preliminary figures. These trends underscore the complexities of inflation dynamics in the Eurozone, with some areas of relief offset by persisting upward pressures in others.