France Inflation Rate Confirmed at 0.6% in December


Consumer prices in France rose 0.6 percent year-on-year in December of 2016, following a 0.5 percent gain in November and matching preliminary figures. It was the highest inflation rate since May 2014, as an increase in prices of food, energy and services offset a decline in cost of manufactured products.

Year-on-year, cost increased for: food (+0.7 percent), fresh food (+5.6 percent), tobacco (+0.1 percent), petroleum products (+7.5 percent), actual rentals and services for dwellings (+0.4 percent), transport (+1.0 percent), communication (+2.3 percent) and other services (+1.1 percent). In contrast, cost fell for: clothing and footwear (-0.1 percent), medical products (-2.4 percent), other manufactured products (-0.8 percent) and health services (-0.2 percent). Cost was flat for other food.

On a monthly basis, consumer prices went up 0.3 percent, after remaining unchanged in the prior two months and in line with consensus. Prices increased for: food (+0.1 percent), fresh food (+0.1 percent), medical products (-0.2 percent), clothing and footwear (+0.6 percent), petroleum products (+1.0 percent), actual rentals and services for dwellings (+0.2 percent), transport (+5.1 percent) and other services (+0.3 percent). In contrast, cost fell for: medical products (-0.1 percent), other manufactured products (-0.1 percent) and communication (-0.6 percent). Prices were flat for: other food, tobacco and health services.

In  December, core inflation indicator (ISJ)  dropped by 0.1 percent on the month, following a 0.1 rise in November. Compared to the same month a year earlier, it rose 0.4 percent, following a 0.5 percent rise in the preceding month.

The Harmonized Index of Consumer Prices (HICP) remained unchanged on the month, the same as in the previous two months. Year-on-year, it rose 0.8 percent, compared to a 0.7 percent rise in November.

France Inflation Rate Confirmed at 0.6% in December


Insee l Rida Husna | rida@tradingeconomics.com
1/12/2017 8:08:44 AM