Breaking: Eurozone Preliminary Inflation softens to 10.0% YoY in November vs. 10.4% expected
30.11.2022, 10:01

Breaking: Eurozone Preliminary Inflation softens to 10.0% YoY in November vs. 10.4% expected

The annualized Eurozone Harmonised Index of Consumer Prices (HICP) eased sharply to 10.0% in November vs. October’s 10.6%, the latest data published by Eurostat showed on Monday. The market forecast was for a 10.4% print.

The core figures steadied at 5.0% YoY in November when compared to 5.0% expectations and 5.0% recorded in October.

On a monthly basis, the old continent’s HICP unexpectedly dropped 0.1% in November vs. 1.5% expectations and 1.5% previous. The core HICP stood at 0% this month against the 0.6% expected and 0.6% seen in October.

The Euro area figures are reported a trading day after Germany’s annual inflation for November, which rose by 11.3%, meeting estimates following an 11.6% surge seen in October.

The bloc’s HICP figures hold significance, as it helps investors assess the European Central Bank’s (ECB) monetary policy normalization course. The ECB inflation target is 2%.

Key details (via Eurostat)

“Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in November (34.9%, compared with 41.5% in October), followed by food, alcohol & tobacco (13.6%, compared with 13.1% in October), non-energy industrial goods (6.1%, stable compared with October) and services (4.2%, compared with 4.3% in October).”

EUR/USD reaction

The shared currency is unfazed by the mixed Eurozone inflation data, as EUR/USD preserves intraday gains near 1.0370. The spot is adding 0.36% so far.

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