Annual inflation in the Euro Area declines further in November

November saw the lowest yearly increase in consumer prices since July 2021 (2.4%), according to preliminary estimates.

According to flash estimates provided on Thursday, the annual consumer inflation rate in the euro area dropped for the seventh consecutive month in November, reaching a low point exceeding two years.

According to Eurostat data, consumer prices increased 2.4% year over year in November, which was the smallest rate since July 2021.

Headline inflation decreased from 2.9% in October and fell short of 2.7% as predicted by the market.

The main cause of this was the drop in energy prices, which in November experienced an annualized decline of 11.5%.

Food, drink, and tobacco prices increased annually in October at a rate of 7.4%, but this month they only increased by 6.9%.

The euro area consumer price index increased for three months in a row before declining 0.5% on a monthly basis in November. Since January 2020, this was the greatest monthly drop.

October saw a 2.2% month-over-month decrease in energy prices in the single currency area and a 0.4% increase in food prices.