Euro area annual inflation eases further in November

By Tuba Ongun

The euro area annual consumer inflation rate slowed for the seventh straight month to hit a more than two-year low in November, according to flash estimates released on Thursday.

Consumer prices grew 2.4% year-on-year in November, the slowest pace since July 2021, the Eurostat data showed.

Headline inflation eased from 2.9% in October, and below market forecasts of 2.7%.

This was largely due to falling energy prices, which saw an 11.5% annualized decline in November.

The annual price rise for food, alcohol, and tobacco cooled to 6.9% this month from 7.4% in October.

On a monthly basis, the euro area consumer price index dropped 0.5% in November, after rising for three consecutive months. This was the largest monthly decline since January 2020.

In October, energy prices in the single currency area dropped 2.2% month-on-month, while food prices climbed 0.4%.