Europe’s inflation rate declined to 2.4% in November from 2.9% in October, according to the latest data from statistics agency Eurostat.
The drop in consumer prices across Europe was below economists’ forecasts, which had called for annualized inflation of 2.7% in November.
Core inflation, which excludes volatile energy, food and alcohol prices, also came in lower than expected, falling to 3.6% from 4.2% in October.
Declining energy prices continue to exert downward pressure on inflation in Europe, dropping 11.5% year-over-year in November. Food, alcohol, and tobacco prices rose the most in the month, up 6.9% from a year earlier.
Inflation across the European Union has now declined significantly from a peak of 10.6% reached in October 2022. Inflation in Europe’s largest economies, Germany and France, is at 2.3% and 3.8%, respectively.
Despite the steady decline in inflation, the European Central Bank (ECB) has refused to declare victory and has said that it is too early to talk about interest rate cuts.
Separate data released by Eurostat showed that unemployment throughout Europe remains at a record low of 6.5% despite an economic contraction in this year’s third quarter.
The ECB has pointed to a tight labour market as an ongoing point of concern.