Inflation in the European Union's single currency area has increased for the second month in a row – albeit slightly less than expected.

In Germany, however, inflation rates remained above the Eurozone average.

According to the Luxembourg-based statistics office Eurostat, average consumer prices in November rose by 2.2% year-on-year, down slightly from the predicted 2.3%.

In October, they had risen by 2% and in September by 1.7%.

Looking at individual Eurozone countries, Belgium experienced the steepest November increase at 4.8%. Romania, which doesn't yet use the single currency, had higher inflation of 5.4%, while Croatia was third-highest at 4.0%. 

Inflation in Germany also remained above average at 2.4%, while France and Italy remained below 2%.

The lowest annual rates were registered in Ireland, Lithuania and Luxembourg.

With inflation having climbed down from the highs of over 10% reached in late 2022 following Russia's full-scale invasion of Ukraine, the underlying trend remains in line with the European Central Bank (ECB)'s medium-term target of 2%.

Eurozone construction production also up

Meanwhile, Eurozone construction production also expanded strongly in October after falling in the previous month.

According to Eurostat data, construction output rose by 1% after suffering a 0.3% drop in September. This represented the strongest growth since February 2023.

Analysts said the rebound in output was driven by a 1.6% growth in civil engineering activity, a 0.7% rise in the building sector, and a 0.5% gain in specialized construction activities in the Euro area in October 2024, compared to the month before.

The largest monthly increases in construction production were recorded in Slovakia, Austria, Hungary and Portugal, while decreases were observed in Romania and Poland.

mf/lo (dpa, AFP)