Eurozone inflation edges up to 2.2 percent in November

Brussels –Inflation rose slightly in the eurozone in November: Eurostat’s preliminary estimates show an increase of 0.1 percentage point, bringing the cost-of-living index to 2.2 percent, up from 2.1 percent in October. Inflation was driven up by expected increases in services (3.5 percent from 3.4 percent in October) and energy (-0.5 percent from -0.9 percent in October). On the other hand, food, alcohol, and tobacco (2.5 percent) and non-energy industrial goods (0.6 percent) were stable compared to October. 

At the country level, the European Statistical Institute reported an increase in German inflation in November (2.6 percent, +0.3 percentage points). France’s index was stable (0.8 percent), while those of Spain (3.1 percent, -0.1 percentage points) and Italy (1.1 percent, -0.2 percentage points) fell slightly. 

Full and final data will be released on 17 December, in time for the Central Bank’s Governing Council meeting the following day, 18 December, to make its monetary policy decisions. Frankfurt’s decision to pause interest rate cuts can hardly be questioned in light of the data released by Eurostat. The ECB’s policy decisions rely on available information, and the outlook for inflation, which is expected to grow, does not support easing borrowing costs.