Inflation in the euro zone rose for the second month in a row in November. Consumer prices rose by 2.2 percent compared to the same month last year, as the Eurostat statistics office announced on Wednesday in Luxembourg after a second estimate. The inflation rate was 2.0 percent in October and 1.7 percent in September.
An initial estimate of 2.3 percent was revised downwards slightly. Economists had expected the initial estimate to be confirmed. Compared to the previous month, consumer prices fell by 0.3 percent in November. This value corresponds to the first estimate.
The increase in the annual inflation rate is due to the significantly weaker decline in energy prices compared to the previous year. Economists blame base effects for this.
Looking at individual countries in the Eurozone, inflation calculated according to European standards was highest in November in Belgium at 4.8 percent. In Germany it is 2.4 percent, in France and Italy the inflation is less than 2 percent.
Core inflation excluding volatile prices for energy, food and beverages remained at 2.7 percent in November. Core inflation reflects fundamental inflation and, in the opinion of many economists, represents the inflation trend better than the overall rate.
The European Central Bank (ECB) is aiming for an inflation rate of 2.0 percent in the medium term. Last week, the ECB reduced the deposit interest rate, which sets the trend on the financial market, by 0.25 percentage points to 3.0 percent.
With the fourth interest rate cut this year, the monetary authorities responded to growing concerns about the economy in the euro area. Further downward steps are likely to follow, as trade conflicts with the USA and its President-elect Donald Trump could put additional pressure on the weakening economy in Europe. (dpa)