According to a flash estimate of Eurostat statistics office plummeted to 2.1% in November after 3.2% in October. While the flash estimate delivers no details on the price changes in the goods basket, it can be safely assumed that plunging oil prices and receding commodity prices in general will have contributed prominently to the dramatic decline.
Eurozone inflation last held at this level in September 2007, piercing the ECB target rate of 2% for the first time in history and has since reached a record high of 3.7% in May 2008. Find a table of long term Euro inflation here.
Money supply is still way above the reference rate of 4.5% with an unchanged reading of 8.7% in October. The three-month average of the annual growth rates of M3 over the period August 2008 - October 2008 declined to 8.7%, from 8.9% in the period July 2008 - September 2008, the ECB reported on Thursday.
Unemployment is on the way up, probably due to the contraction in the building industry. Eurostat records show a slight rise to 7.7% in October, compared to 7.6% in September. It was 7.3% in October 2007. The EU27 unemployment rate was 7.1% in October 2008, compared with 7.0% in September. It was 6.9% in October 2007.
This data comes on the heels of declines in industrial orders a few days earlier. In September 2008 compared with August 2008, the euro area1 (EA15) industrial new orders index fell by 3.9%.
In August the index decreased by 1.5%. In the EU27 new orders declined by 4.6% in September 2008, after dropping by 1.7% in August. Excluding ships, railway and aerospace equipment, for which changes tend to be more volatile, industrial new orders decreased by 2.2% in the euro area and by 2.7% in the EU27.
With sentiment in the basement, this data set delivers a mixed outlook for the European economy at best.