Inflation in the euro area accelerated to 2.3% y/y in November

Inflation in the euro area in November 2024 increased by 2.3% compared to the same month in 2023. Thus, the indicator accelerated the growth rate compared to October, when it amounted to +2% y/y. This is evidenced by preliminary data from Eurostat.

The consensus forecast of analysts, cited by Trading Economics, assumed an increase in the growth rate of consumer prices in November to 2.3%, which corresponds to the actual figure.

In November, core inflation, which excludes energy and food costs, remained at the level of October at 2.7%. Energy prices decreased by 1.9% after falling by 4.6% in October.

During the month, the member states with the highest annual inflation rates were Belgium (5%), Croatia (4%), and the Netherlands and Estonia (3.8% each). The lowest rates were recorded in Ireland (0.5%) and Lithuania and Luxembourg (1.1% each). In Germany, consumer prices rose by 2.4%, in Italy – by 1.6%, and in France – by 1.7%.

As a reminder, the seasonally adjusted GDP of the European Union in the third quarter of 2024 increased by 0.3% compared to the previous quarter, when the bloc’s economy grew by 0.3%. Compared to July-September 2023, EU GDP grew by 0.9%. At the same time, the eurozone economy grew by 0.4% q/q and 0.9% y/y over the same period.

As GMK Center reported earlier, the European Central Bank cut key interest rates by 25 basis points on October 17, as analysts had expected. This is the third reduction in a row since June this year.