Eurozone Inflation Rate Revised Down to 1.9%


Annual inflation rate in the Euro Area was revised lower to 1.9 percent in November of 2018 from a preliminary of 2 percent and 2.2 percent in October. It is the lowest inflation rate in six months amid a broad-based price slowdown, final figures showed.

Year-on-year, the highest contributions came from energy (+0.88 percentage points), followed by services (+0.57 pp), food, alcohol & tobacco (+0.38 pp) and non-energy industrial goods (+0.11 pp). Prices rose less for services (1.3 percent compared to 1.5 percent in October); energy (9.1 percent compared to 10.7 percent); processed food, alcohol & tobacco energy (2 percent compared to 2.2 percent); and unprocessed food (1.8 percent compared to 2.1 percent). Meanwhile, non-energy industrial goods inflation was unchanged at 0.4 percent.

Among major economies, inflation eased in Germany (2.2 percent compared to 2.4 percent), France (2.2 percent compared to 2.5 percent), Italy (1.6 percent compared to 1.7 percent) and Spain (1.7 percent compared to 2.3 percent).

Annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, edged down to 1 percent from 1.1 percent in October, in line with earlier estimates. 

On a monthly basis, consumer prices fell 0.2 percent, after rising 0.2 percent in October and matching market expectations. 

Considering the European Union, annual inflation fell to 2 percent from 2.2 percent. The lowest annual rates were registered in Denmark (0.7 percent), Ireland (0.8 percent) and Portugal (0.9 percent). The highest annual rates were recorded in Estonia, Hungary and Romania (all 3.2 percent). 

Eurozone Inflation Rate Revised Down to 1.9%


Joana Taborda | joana.taborda@tradingeconomics.com
12/17/2018 10:18:24 AM