French December Inflation Rate Confirmed at 1.2%


The consumer price index in France rose by 1.2 percent year-on-year in December of 2017, matching the preliminary estimate, the same pace as in the previous month. The inflation rate remains at its highest level since April, amid rising prices of tobacco and a lower drop in those of manufactured products.

Year-on-year, prices continued to advance for tobacco (6 percent vs 4.4 percent in November). Additionaly, those of manufactured goods fell at a slower pace (-0.1 percent vs -0.2 percent), as cost decreased less for clothing and footwear (-0.1 percent vs -0.3 percent) while grew more for other manufactured products (0.3 percent vs 0.1 percent).

On the other hand, prices eased for energy (5 percent from 5.4 percent), driven by petrolem products (8.2 percent vs 8.6 percent); gas (2.6 percent vs 4.1 percent) and electricity (1.5 percent, steady from November). Also, prices of food slowed (1.3 percent vs 1.5 percent), namely fresh food (2.6 percent vs 3.6 percent) and other food (1.1 percent, unchanged from November) while cost of services remained steady (at 1 percent).

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, rose 0.6 percent after increasing 0.5 percent in the previous 5 months.

On a monthly basis, consumer prices went up by 0.3 percent in December, in line with a preliminary reading, and above a 0.1 percent rise in November. This increase came from a seasonal rebound in services prices and, in a lesser extent, from that of manufactured product prices. On the other hand, energy prices and tobacco prices slowed down and those of food were stable.

The harmonized index of consumer prices increased by 1.2 percent from the previous year; and inched up by 0.4 percent from the previous month.

French December Inflation Rate Confirmed at 1.2%


INSEE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
1/12/2018 8:41:47 AM