Latest data released by Eurostat - 30 November 2021
- Prior +4.1%
- Core CPI +2.6% vs +2.3% y/y
- Prior +2.0%
Boom. Eurozone inflation soared to its highest in 30 years while the core reading is the highest on record in November, as surging energy costs are the key driver (up 27% from a year ago) for the increase in prices.
However, services inflation and non-energy industrial goods inflation were both also seen above the 2% mark. That suggests that the rise in underlying price pressures is quite broad as well. Just something to be wary about.
In any case, the ECB maintains that inflation is likely to have met its peak in November and that it will slowly trickle lower next year. Only time will tell if they are right but as a reminder, peaking and falling back to 2% are two separate events to consider.
