- TD Securities
Consumer prices in the Euro zone advanced in line with analysts' expectations last month, official data showed on Friday. According to Eurostat, the headline Consumer Price Index was revised up to 0.6% in November, the highest level since April 2014, from the preliminary reading of 0.5%, meeting economists' projections. Data also showed that the so-called core CPI, which excludes food, energy, alcohol and tobacco prices, rose 0.8% in the 11th month of the year, matching the flash reading and consensus forecast. The price of energy dropped 0.2% and 1.1% month-over-month and year-over-year, respectively. The cost of non-energy industrial goods held steady in November, while prices of services declined 0.3% on a monthly basis, growing 1.1% in annual terms.
The latest PMI survey signaled strong inflationary pressures in the Euro zone industrial sector. Moreover, analysts widely expect the weaker Euro, combined with higher oil prices, boost inflation in the region during the upcoming months, suggesting the headline rate could move above 1.0%. After the release, the EUR/USD rose to around 1.047 after hitting the lowest level since 2003 after the Federal Reserve raised its interest rate on Wednesday.
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