Euro area CPI slows more quickly than expected in November

The cost of living in the Eurozone slipped a bit more quickly than expected in November at both the headline and core level as energy price gains slowed.

According to Eurostat, the rate of increase in the headline Eurozone consumer price index slowed from 2.2% for October to 2.0% in November.

Meanwhile, so-called 'core' CPI, which excludes energy, food, alcohol and tobacco dipped from the 1.1% pace observed during the previous month to 1.0%.

In particular, energy price gains declined from a 10.7% clip to 9.1%.

Services price inflation also fell, from 1.5% to 1.3%.

Commenting on Friday's data, Fabio Fois at Barclays Research said: "November inflation data suggest headline inflation peaked in the euro area and will likely soften in the coming months.

"Meanwhile, core inflation momentum remains modest and consistent with our view that a gradual recovery of underlying inflation is still more likely than a non-linear acceleration."