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Tuesday February 07, 2023

Eurozone inflation falls in Nov

By AFP
December 01, 2022

Brussels: The eurozone annual inflation rate fell for the first time in 17 months in November as it slowed to 10 percent, official data showed Wednesday.

Boosted by soaring energy and food bills triggered by Russia´s war in Ukraine, the rate of price increases had hit a new historic record every month since November 21.

Analysts had expected the inflation rate in the single currency area to fall but the drop was steeper than predicted by Bloomberg and FactSet, who foresaw 10.4 percent. Inflation had hit 10.6 percent in October.

But the November figure may not convince the European Central Bank that it can stop raising interest rates, as its president Christine Lagarde has expressed scepticism that inflation has peaked.

As late as Monday, Lagarde warned: "I think that there is too much uncertainty ... to assume that inflation has actually reached its peak. It would surprise me."

Analysts said the reverse in the trend could see the bank go for a smaller 50-basis-point increase in rates next month rather than the expected 75-point bump.

"We were due some good news," said Bert Colijn, senior eurozone economist at the ING bank. "The eurozone inflation rate ticked down after a few nasty upside surprises."

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