Euro zone inflation in November 2025
Euro zone inflation saw a slight increase to 2.2% in November, according to flash data from Eurostat. This figure is just above the European Central Bank’s target of 2%. Economists had expected a reading of 2.1% for the twelve months to November.
The main components of euro area inflation show that services had the highest annual rate in November at 3.5%, compared to 3.4% in October. Core inflation, which excludes volatile prices like energy, food, alcohol, and tobacco, remained unchanged at 2.4% in November.
The ECB kept its key deposit facility rate at 2% for the third consecutive time in late October. This decision came as euro zone inflation reached the ECB’s target rate of 2%. The central bank had previously cut rates from a record high of 4% last year.
Top ECB board members have indicated that the easing cycle may be coming to an end, although the central bank continues to take a meeting-by-meeting and data-dependent approach to rate setting. ECB President Christine Lagarde stated that the economy is in a good place from a monetary policy perspective, but emphasized the need to remain vigilant and take necessary actions to maintain stability.
Overall, the latest inflation data points to a stable but cautious approach by the ECB as it navigates the economic landscape in the euro zone. The central bank remains committed to supporting growth while keeping a close eye on inflation dynamics.
