The lower inflation rate is due to a slowdown in prices of services related to recreation, including repair and personal care (up 0.4 percent following a 1.4 percent rise in the previous month), restaurants and hotels (up 0.7 percent following a 2.1 percent rise in October), unprocessed food (up 3.2 percent following a 4.1 percent rise in October) while cost of non-regulated energy products fell at a slower pace (-11.2 percent following a 12.7 percent drop in October).
Excluding energy and unprocessed food, core inflation was 0.6 percent, down from 0.8 percent in the previous month; excluding energy, the inflation was 0.8 percent (0.2 percentage points lower than that that of October 2015).
On a monthly basis, consumer prices are expected to fall 0.4 percent in November, following a 0.2 percent rise in October. The decrease was mainly due to a fall in prices of services related to recreation, including repair and personal care (-1.8 percent), restaurants and hotels (-2.5 percent) and services related to transport (-1.2 percent), partially off-set by a 0.7 percent rise in cost of unprocessed food (+0.7 percent).
The harmonized index is expected to rise 0.1 percent year-on-year and fall 0.5 percent on a monthly basis.