Inflation in the euro area

Data from November 2022. Extracted on 30 November 2022.

Next planned article update: 16 December 2022.

Highlights

Euro area annual inflation is expected to be 10.0 % in November 2022, down from 10.6 % in October 2022.

Euro area annual inflation and its main components, November 2012 - November 2022 (estimated)
(%)
Source: Eurostat (prc_hicp_manr)

The ﬁgures presented in this article are early estimates of the Harmonised Index of Consumer Prices (HICP).

Full article

Euro area annual inflation rate and its main components

Euro area annual inflation is expected to be 10.0 % in November 2022, down from 10.6 % in October 2022.

Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in November (34.9 %, compared with 41.5 % in October), followed by food, alcohol & tobacco (13.6 %, compared with 13.1 % in October), non-energy industrial goods (6.1 %, stable compared with October) and services (4.2 %, compared with 4.3 % in October).

Table on the euro area annual inflation and its main components. The ten rows show the following items: 1) all-items, 2) all-items excluding energy, 3) all-items excluding energy and unprocessed food, 4) all-items excluding energy, food, alcohol and tobacco, 5) food, alcohol and tobacco, 6) processed food, alcohol and tobacco, 7) unprocessed food, 8) energy, 9) non-energy industrial goods, and 10) services. Data is shown in eight columns, which are: the item group's weight in 2022 in per mil, as well as the euro area annual inflation in the month of November 2021 and the six months from June 2022 to November 2022

Table 1: Euro area annual inflation and its main components, 2022, November 2021 and June 2022-November 2022 (estimated)
(%)
Source: Eurostat (prc_hicp_inw) and (prc_hicp_manr)

Figure 1: Euro area annual inflation and its main components, November 2012 - November 2022 (estimated)
(%)
Source: Eurostat (prc_hicp_manr)

Figure 2: Euro area annual inflation and its main components, November 2020 - November 2022 (estimated)
(%)
Source: Eurostat (prc_hicp_manr)

Main components of inflation

Each of the main components contribute in varying degrees to the headline inflation in the euro area. In terms of weights for 2022, 100 % for the headline HICP, services is the largest component, accounting for around 41.7 % of household final monetary consumption expenditure in the euro area. It is followed by non-energy industrial goods with around 26.5 %.

Food, alcohol & tobacco and energy account for 20.9 % and 10.9 %, respectively. Together, they comprise less than one-third of euro area expenditure, but they can have significant impacts on the headline inflation as their prices tend to fluctuate significantly more than the other components' prices.

The weights of the main components of the euro area for 2022 are presented in Figure 3. Table 2 shows their relative weights for 2022.