Inflation in the euro area is negative again in November. This is reported by the European statistical office Eurostat, which made a preliminary estimate. The currency devaluation came down to minus 0.3 percent, the same as in October.
Inflation in the euro area has been negative since August and economists had been counting on it. But they were counting on an inflation rate of minus 0.2 pecent this month.
The drop in consumer prices is due to the decrease in demand for certain products due to the coronacrisis. Prices in the services sector are also under pressure or difficult to measure because, for example, holidays and air tickets are sold much less. Moreover, oversupply has led to relatively low energy prices for months.
The core inflation, i.e. excluding the influence of the strongly fluctuating prices for energy and life and pleasure products, was 0.2 per cent in November, equivalent to a month earlier.
The largest negative inflation rate in the euro area was measured in Greece by minus 2 percent. In the Netherlands, inflation was still positive: 0.7 percent.