Growth in consumer prices in the eurozone in November was slower than expected.
This serves as a reminder to the European Central Bank that accelerating economic growth does not guarantee inflation to return to target levels.
Consumer prices in the eurozone rose 1.5% year on year after rising 1.4% in October, according to preliminary data from the Statistical Office of the European Union (Eurostat).
Analysts surveyed by Bloomberg on average predicted a 1.6% increase in consumer prices in November.
Consumer prices, excluding volatile factors such as energy, food and alcohol prices (CPI Core Index), rose 0.9% year on year after a similar increase in October. Experts expected an increase of 1%.
The cost of energy in November increased by 4.7% in annual terms after rising 3% a month earlier.
Food, beverages and tobacco rose 2.2%. A month earlier, an increase of 2.3% was recorded.
Prices for services increased by 1.2%, as in October.
Recent data indicate a dilemma facing the European Central Bank (ECB).
The region’s economy is preparing for the year to demonstrate the highest growth rates in a decade, but the regulator is not able to achieve a steady increase in inflation to the target level of “just under 2%”.
ECB representatives admitted that in the current environment less additional monetary support required. However, it was reported that in November, the head of the ECB, Mario Draghi, said that, despite the improvement in the economic situation in the eurozone, the central bank should be “patient” with the normalization of monetary policy.
The next meeting of the Governing Council of the ECB will be held on December 14. In October, the ECB decided to extend the bond purchase program until at least September, while halving its monthly purchases.