Inflation in Europe is decelerating faster than forecast

In November, the annual inflation data of the Eurozone decreased significantly, rapidly approaching the desired limit of 2%. What are the latest forecasts of financial analysts on inflation rates in 2024, and what rate cut can we expect from the European Central Bank (ECB)? Collected by Citadele Bank.

In November, annual eurozone inflation slowed down more than expected, falling to 2.4% (previously – 2.9%). The slowdown in inflation in November was largely due to slower annual growth in food prices and lower core inflation. In November, annual core inflation dropped to 3.6% from 4.2% in October. Meanwhile, the drop in energy resource prices in annual terms remained relatively stable, deducting around 1.5 percentage points from the annual figure of inflation.