Belgium reported the highest annual inflation rate in the euro area in November, with a rate of 5.0%, according to flash estimates from Eurostat.
Other countries to report a noticeably high inflation rate for the month included Croatia (4.8%), Estonia (3.8%), the Netherlands (3.8%) and Slovakia (3.6%).
At the other end of the scale, the lowest annual inflation rate was recorded in Ireland, at 0.5%, while Luxembourg (1.1%), Lithuania (1.1%), Slovenia (1.6%) and Italy (1.6%) also reported low inflation rates.
Euro area inflation is expected to stand at 2.3% in November 2024, up from 2.0% the previous month, Eurostat noted.
The services sector is expected to contribute the most to November inflation, with an annual rate of 3.9%, slightly lower than 4.0% in October, while food, alcohol, and tobacco is anticipated to have an annual inflation rate of 2.8%, down from 2.9% in October.
Non-energy industrial goods show a slight increase, with an annual rate of 0.7%, compared to 0.5% in the previous month. Meanwhile, energy remains in deflation territory with a projected rate of -1.9%, up from -4.6% in October.
Input prices
Commenting on the data, Bert Colijn, chief economist with ING in the Netherlands, said, “We expected November’s data to show an increase in headline inflation because of base effects, but some upward pressure from input prices is starting to become more pressing. Commodity prices, such as food and natural gas, have been on the rise again, which is starting to impact headline inflation, although that impact is fairly modest so far. The substantial weakening of the euro against the dollar adds to this modest upward pressure on inflation at the moment.
“At the same time, economic activity continues to show signs of weakness. And while wage growth has come in hotter than expected in the third quarter, this is likely more of a ‘last hurrah’ than an accelerating trend.” Read more here.
Inflation rate by euro area country, November 2024 (%, estimated)
| Country | Inflation Rate (%) |
|---|---|
| Belgium | 5.0 |
| Croatia | 4.0 |
| Estonia | 3.8 |
| Netherlands | 3.8 |
| Slovakia | 3.6 |
| Greece | 3.0 |
| Portugal | 2.7 |
| Germany | 2.4 |
| Spain | 2.4 |
| Cyprus | 2.4 |
| Latvia | 2.3 |
| Malta | 2.3 |
| Austria | 2.0 |
| Finland | 1.9 |
| France | 1.7 |
| Italy | 1.6 |
| Slovenia | 1.6 |
| Lithuania | 1.1 |
| Luxembourg | 1.1 |
| Ireland | 0.5 |
