Consumer prices provisionally fell 0.2 percent on the month in November. This reduced the annual inflation rate from a final 2.2 percent in October to 1.9 percent, its first sub-2 percent reading since April.
The flash HICP also declined 0.2 percent versus the start of the quarter which shaved its yearly rate from 2.5 percent to 2.2 percent.
The fall in annual CPI inflation was largely attributable to the more volatile items. Hence, the rate for food was down 0.3 percentage points at 1.9 percent while energy was off 2.5 percentage points at 11.3 percent. Manufactured products (minus 0.3 percent after minus 0.4 percent) edged marginally firmer, but remained in deflationary territory, but services (1.1 percent after 1.2 percent) were a little softer.
Having already seen a decline in inflation in Germany (see yesterday's report), today's French update increases the likelihood of a fall in overall Eurozone inflation this month (data due shortly). There is also probably some downside risk to the key underlying gauges.