Inflation in the eurozone rose to 2.2% y/y in November

The service sector remains the main driver of growth, while energy prices continue to fall

Inflation in the eurozone accelerated to 2.2% year-on-year in November 2025, up from 2.1% in October, according to Eurostat’s preliminary estimate. Thus, the indicator slightly exceeded the European Central Bank’s target of 2% and remains close to it.

Core inflation (excluding energy, food, alcohol, and tobacco) remained at 2.4% year-on-year.

The highest growth rates were observed in the services sector – 3.5% after 3.4% in October. This is followed by food, alcohol, and tobacco (+2.5%, unchanged) and non-energy industrial goods (+0.6%, stable). At the same time, energy prices fell by 0.5%, slightly less than a month earlier (-0.9%), which continues to hold back overall inflationary pressure.

Among the eurozone countries, the highest annual inflation rates were recorded in Croatia (+4.3%), Austria (+4.1%), and Latvia (+3.8%). Inflation was 3.1% in Spain and 2.6% in Germany, while the lowest price growth rates were in France (+0.8%) and Italy (+1.1%).

Accelerating inflation could complicate the European Central Bank’s plans for further monetary policy easing. Although inflationary pressures remain moderate compared to the peaks of previous years, the ECB continues to assess the stability of price dynamics before making decisions on interest rates.

According to preliminary data, in the third quarter of 2025, the European Union’s GDP grew by 0.3% compared to the previous quarter, while in the eurozone it grew by 0.2% quarter-on-quarter. In annual terms, the EU economy grew by 1.5% and the eurozone economy by 1.3%. Sweden, Portugal, and the Czech Republic led the recovery.