Eurozone Inflation Rate Slows More than Expected


The annual inflation rate in the Euro Area is expected to ease to 2.0 percent in November 2018 from a near six-year high of 2.2 percent in the previous month and slightly below market consensus of 2.1 percent. Prices should rise at a softer pace for services, energy, and food, alcohol & tobacco.

Looking at the main components of euro area inflation, prices are expected to rise at a slower pace for services (1.3 percent vs 1.5 percent in October); energy (9.1 percent vs 10.7 percent); processed food, alcohol & tobacco energy (2.0 percent vs 2.2 percent); and unprocessed food (1.8 percent vs 2.1 percent). Meanwhile, non-energy industrial goods inflation should remain unchanged at 0.4 percent.

Annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, is likely to decrease to 1 percent in November from 1.1 percent in October and also below market consensus of 1.1 percent.

Eurozone Inflation Rate Slows More than Expected


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/30/2018 10:09:40 AM