Euro Area: Harmonized inflation rises in November
Latest reading: Harmonized inflation rose to 2.3% in November, up from October’s 2.0% print and matching market expectations. Looking at the details of the release, prices for energy dropped at a slower rate, largely due to a base effect. Moreover, prices for non-energy industrial goods rose at a quicker pace. That said, food and services inflation ticked down.
The trend was unchanged, with annual average harmonized inflation coming in at October’s 2.4% in November. Meanwhile, core inflation was steady at 2.7% for the third consecutive month.
Finally, harmonized consumer prices fell 0.28% in November over the previous month, swinging from October’s 0.34% increase.
Outlook: Our panelists expect inflation to moderate marginally from current levels in the coming quarters and see inflation averaging the ECB’s 2.0% target in 2025 as a whole.