Inflation: Inflation in the Eurozone is falling significantly

The inflation in the Eurozone fell significantly in November. Consumer prices were 2.4 percent above the level of the same month last year, as the statistics office Eurostat announced. In the previous month, inflation was 2.9 percent and a year ago it was 10.1 percent. On a monthly basis, prices fell by 0.5 percent in November.

Core inflation, which excludes volatile prices for energy and food, also fell significantly. In this consideration, the inflation rate from 4.2 to 3.6 percent. According to many economists, core inflation reflects basic inflation and therefore represents the inflation trend somewhat better than the overall rate.

Although food and beverages were still significantly more expensive than a year ago, the price increase weakened from 7.4 to 6.9 percent. Prices for services and other goods also rose more slowly. Energy prices fell again significantly by 11.5 percent compared to the same month last year.

Despite the declining price inflation, the medium-term inflation target is the European Central Bank (ECB) of two percent exceeded. Many experts expect that it will take some time before the goal is achieved sustainably. The ECB has raised its key interest rates sharply since the summer of 2022, but recently left them unchanged.