Inflation figures from the eurozone’s main economies paint a combined image of the bloc’s value prospects. In Germany, the area’s greatest economic system, the inflation price unexpectedly rose to the best stage in 9 months.
Primarily pushed by meals costs, as vitality costs fell modestly, EU-harmonised inflation in Germany was 2.6% increased in November in contrast with the earlier 12 months, after inflation hit 2.3% in October of 2025. That is in accordance with preliminary outcomes from the Federal Statistical Workplace (Destatis).
Month-on-month, the harmonised inflation price confirmed that German costs fell by 0.5% in November, from a 0.3% rise in October.
French costs are sluggish to rise
Elsewhere, it seems that Europe’s value strain is cooling following the area’s post-pandemic cost-of-living disaster. Preliminary information launched on Friday suggests French inflation stays subdued. In keeping with flash estimates from INSEE, the nation’s EU-harmonised value index is projected to rise by 0.8% year-on-year in November, unchanged from the earlier month and down from 1.7% a 12 months earlier.
Economists had anticipated a stronger enhance of 1%.
The secure studying displays contrasting actions throughout spending classes: a slowdown in service costs, pushed down by communication companies, and a extra pronounced lower in manufactured items costs, offset by a smaller decline in vitality costs and a slight acceleration in meals costs.
Month-over-month, French costs fell by 0.2% in November, after a 0.1% enhance in October. The consensus forecast had pointed to no change.
The decline was pushed by decrease service costs, notably in transport and communications, and to a lesser extent by cheaper manufactured items. Vitality costs are anticipated to rebound, led by petrol merchandise, whereas tobacco costs are projected to edge increased. Meals costs are anticipated to stay broadly secure.
Inflation in Italy
The EU’s third-largest economic system confirmed the same sample. Italy’s harmonised index of client costs fell by 0.2% in November, matching October’s decline, in accordance with preliminary figures from the nationwide statistics company ISTAT.
Annual inflation eased to 1.1% from 1.3% within the earlier month, which is its lowest stage since October 2024.
Italian inflation remained low as falling vitality costs and softer companies inflation offset modest rises elsewhere. The biggest downward pressures got here from steep declines in regulated vitality and communication companies, alongside slower will increase in transport and leisure companies.
Only some classes — primarily processed meals and a few unregulated vitality merchandise — added delicate upward strain.
Spanish costs are on the rise
Spain, the eurozone’s fourth-largest economic system, recorded considerably stronger value pressures. The EU-harmonised index of client costs was flat in November following a 0.5% rise in October, defying expectations of a 0.2% month-to-month fall, in accordance with preliminary information from the Nationwide Statistics Institute.
Nevertheless, annual inflation got here in increased than anticipated. The harmonised price eased to three.1% from 3.2% in October, in contrast with a forecast of two.9%. Worth rises for meals, transport and different non-energy items continued to drive inflation.
Friday’s figures from the eurozone’s main economies will inform the European Central Financial institution forward of its assembly in December. The ECB just isn’t anticipated to chop its key rate of interest from the present 2%, with policymakers judging that medium-term inflation targets are broadly being met.
Eurozone inflation stood at 2.1% in October, barely above the ECB’s 2% goal, reinforcing the financial institution’s view that value pressures are largely underneath management after the surge to double-digit highs attributable to post-pandemic provide shocks and the vitality disaster triggered by Russia’s invasion of Ukraine.
In the meantime, inflation expectations have edged increased. In keeping with a brand new ECB survey printed on Friday, median client inflation expectations for the subsequent 12 months rose to 2.8% in October from 2.7% in September. Expectations for 3 years forward had been unchanged at 2.5%, whereas five-year-ahead expectations remained regular at 2.2%.
