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Core inflation in the Euro area is dropping steadily

Published on 7 Comments on Core inflation in the Euro area is dropping steadily

Today Eurostat released its flash inflation estimate for November. Here is my usual presentation of the data: monthly core inflation with a trendline to smooth out the noise.

The headline inflation rate was 10% thanks to high food and energy prices, but this is due mostly to Vladimir Putin, not to underlying economic conditions. Monthly core inflation is the better measure, and it dropped to 2.4% in November. The trendline is around 5.5%, which is probably the best estimate of actual inflationary pressure in the EU area.

This is still too high, but it's not wildly out of control. It's higher than the US rate of roughly 5%, but only slightly.

7 thoughts on “Core inflation in the Euro area is dropping steadily”

  1. Austin

    Those dastardly Democrats are still at it, with their spending policies driving inflation all over Europe now!

    I hope that by making it way more expensive to buy a house in America, we somehow succeed at driving down the worldwide cost of food and gas for American households!

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