Eurozone Inflation Rises to 2.2% in November Despite Monthly Dip

Annual consumer inflation in the eurozone rose slightly to 2.2% in November, above expectations that it would remain at October’s 2.1%, according to preliminary data from Eurostat.

On a monthly basis, the consumer price index (CPI) declined by 0.3% compared with October, when it had increased by 0.2%. This marks the first monthly drop in inflation since January 2025.

The uptick in annual inflation was largely driven by a rise in services sector prices, which grew 3.5% year-on-year compared with 3.4% in October. Energy prices fell by 0.5%, a smaller decline than the 0.9% drop recorded the previous month. Prices for non-energy industrial goods remained steady at 0.6%, while food, alcohol, and tobacco held at 2.5%.

Core inflation, which excludes food and energy, increased for the third month in a row to 2.4% year-on-year, slightly below expectations of 2.5%. On a monthly basis, core inflation decreased by 0.5%, following a 0.3% rise in October.

Looking at individual countries, Estonia recorded the highest annual inflation in November at 4.7%, followed by Croatia at 4.3% and Austria at 4.1%. The lowest inflation was observed in Cyprus at 0.2% and France at 0.8%.

Despite the variation in inflation rates across the eurozone, the overall figure remains close to the European Central Bank’s 2% target, reinforcing the ECB’s current policy of keeping key interest rates unchanged.