Inflation drops to 1.6%

Inflation rate stood at 1.9% in the Eurozone, and 1.6% in Cyprus, for November 2018, down from 2.2% and 1.9% respectively in October, according to Eurostat, the statistical office of the European Union. A year earlier, the rate was 1.5% in the Eurozone and 0.2% in Cyprus.

Meanwhile, European Union annual inflation was 2.0% in November 2018, down from 2.2% in October. A year earlier, the rate was 1.8%.

The lowest annual rates were registered in Denmark (0.7%), Ireland (0.8%) and Portugal (0.9%). The highest annual rates were recorded in Estonia, Hungary and Romania (all 3.2%). Compared with October 2018, annual inflation fell in twenty-five Member States, remained stable in one and rose in one.

In November 2018, the highest contribution to the annual euro area inflation rate came from energy (+0.88 percentage points), followed by services (+0.57 pp), food, alcohol & tobacco (+0.38 pp) and non-energy industrial goods (+0.11 pp).