Eurozone inflation drops to 1.9 per cent in November

Luxembourg – Annual inflation in the eurozone fell to 1.9 per cent in November, the European Union’s statistics office has announced, revising down an earlier estimate.

Inflation target

This is down from 2.2 per cent in October, and is near the European Central Bank’s (ECB) inflation target of just below 2 per cent.

An earlier estimate had put the November inflation rate – the annual increase in the cost of living – at 2 per cent.

If the rate is adjusted to exclude the more volatile components of energy, food, tobacco and alcohol, inflation rose just 1 per cent last month.

Increase in prices

Energy prices jumped the most, by 9.1 per cent, followed by a more modest increase in food, alcohol and tobacco prices of 1.9 per cent. The cost of services and non-energy industrial goods rose slightly.

The ECB confirmed last week that by year end it would phase out an emergency stimulus plan introduced almost four years ago to fire up economic growth and boost inflation in the wake of Europe’s financial crisis.

The Frankfurt-based bank has cited rising price pressures as one reason for this policy shift.