BRUSSELS (XINHUA) – Eurozone’s annual inflation rate for November is expected to reach 2.3 per cent, up from two per cent in October, according to a flash estimate by Eurostat.
The price of services remains the primary driver of inflation in the eurozone, with year-on-year inflation at 3.9 per cent, and the annual inflation rate for food and beverages at 2.8 per cent.
Non-energy industrial goods registered an annual inflation rate of 0.7 per cent in November, up from 0.5 per cent in the previous month.
Among the eurozone countries, Belgium recorded the highest inflation rate for November at five per cent, followed by Croatia at four per cent, with both Estonia and the Netherlands at 3.8 per cent.
For the larger economies, France’s inflation rate in November stood at 1.7 per cent, while Spain’s inflation rose to 2.4 per cent and Germany’s remained stable at 2.4 per cent.
“We expected November’s data to show an increase in headline inflation due to base effects, but some upward pressure from input prices is becoming more significant,” said Chief Economist at ING Bert Colijn.
Factors contributing to the November inflation rate include rising food and gas prices, as well as the weakening of the euro against the dollar.
However, weak demand in the eurozone is expected to be a key factor in moderating inflation next year, according to Colijn.
“While December is likely to show another high headline inflation figure, we expect moderation in early 2025,” said the ING economist, adding that easing pressures from services inflation could be observed in the coming months.
