Food prices are still soaring despite energy costs and slowing headline inflation in the euro zone in November.
Overall, Irish prices rose 9 percent compared to November 2021, according to a flash estimate from the EU’s statistics agency.
The figure is down from 9.4 percent in October, Eurostat said. Ireland’s consumer price index, which measures a slightly different basket of goods, was 9.2 percent in October.
Inflation in the euro zone slowed to 10 percent yoy in November, from 10.6 percent in the previous month.
The slowdown has been faster than expected and could prompt the European Central Bank to hike interest rates by less than 0.5 percent at its December meeting, ING analysts said.
“Whether this is the peak of inflation remains to be seen,” said the eurozone’s leading economist Bert Colijn. “Another episode of the energy crisis could easily push inflation back up, and core inflation usually proves stubborn after a supply shock.”
Annual euro-zone inflation is still being driven by energy, although energy prices slowed to 34.9 percent, down from more than 41 percent in October.
Food, alcohol and tobacco prices rose 13.6 percent from 13.1 percent in October. Industrial goods remained stable, while service prices slowed slightly.
Core inflation, which excludes volatile food and energy prices, remained steady at 5 percent.
Month on month, prices in the euro zone fell by 0.1 percent.
Price increases slowed down in almost all 19 euro countries with the exception of Slovenia, Slovakia and Finland.
But inflation is still in double digits in 11 countries, including Germany and Italy, and above 20 percent in Estonia, Latvia and Lithuania.
The CSO will release its November CPI for Ireland next month.
https://www.independent.ie/business/world/food-prices-trend-up-but-overall-inflation-shows-signs-of-slowing-42185004.html Food prices are trending higher but headline inflation is showing signs of slowing