Eurozone inflation recorded a minimum acceleration in November

Eurozone inflation recorded a minimum acceleration in November, according to the initial estimates of the European statistical office Eurostat. The monthly CPI growth accelerated to 0.6% in November against 0.5% in October, according to preliminary data. This should please the European Central Bank, which wants a higher overall level of inflation, at around 2% in the medium term. It has been buying Eurozone government bonds to inject cash into the banking system and make banks lend to the real economy.

The biggest contribution to Eurozone inflation in November have prices of services, which recorded a growth of 1.1%. The increase in prices of food, alcoholic drinks and tobacco products accelerated to 0.7% in November from 0.4% in October and non-energy industrial goods remained stable at 0.3%.

Only energy prices decreased in November, according to preliminary estimates from Eurostat. The decline accelerated to 1.1% compared to 0.9% in October.

The core rate of inflation—which excludes prices of energy, food and tobacco, has a different story. It has been stuck at 0.8% for four straight months, and at the same level as in June 2014.

“We can deliver the appropriate policy stance by different combinations of instruments, for instance the amount of monthly [bond] purchases or the length of time over which they take place”, said President of ECB, Mario Draghi.

The final Eurozone inflation for November will be published on November 16.

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