Eurozone Inflation Rate Confirmed at 0.6% In November


Consumer prices in the Euro Area increased by 0.6 percent year-on-year in November 2016, following a 0.5 percent growth in the previous month and in line with preliminary estimates. It was the highest inflation rate since April 2014, driven by higher cost of restaurants and cafés and rents and tobacco. Core inflation rate, which excludes prices of energy, food, alcohol and tobacco, was unchanged for the third straight month at 0.8 percent.

The largest upward impacts to euro area annual inflation came from restaurants and cafés (+0.07 percentage points), rents and tobacco (both +0.04 pp); while gas (-0.11 pp), heating oil (-0.05 pp) and package holidays (-0.04 pp) had the biggest downward impacts.

In November 2016, negative annual rates were observed in six Member States. The lowest annual rates were registered in Bulgaria and Cyprus (both -0.8 percent). The highest annual rates were recorded in Belgium (1.7 percent), the Czech Republic (1.6 percent) and Austria (1.5 percent). Compared with October 2016, annual inflation fell in five Member States, remained stable in six and rose in seventeen.

Core inflation which excludes energy, food, alcohol and tobacco was recorded at 0.8 percent, the same as in October. Excluding fuel only, the inflation rose to 0.8 percent from 0.7 percent in the previous month.  

On a monthly basis, consumer prices decreased by 0.1 percent, compared to 0.2 percent growth in October and in line with preliminary estimates.

Eurostat | Yekaterina Guchshina | yekaterina@tradingeconomics.com
12/16/2016 11:13:53 AM