French Inflation Confirmed at 0.2% YoY in January


French consumer prices rose 0.2 year-on-year in January of 2016, the same pace as in the preceding month and matching preliminary estimates. An increase in cost of food and services offset a decline in cost of manufactured products and energy.

Year-on-year, cost increased for: food (+0.4 percent), fresh food (+1.8 percent), other food (+0.2 percent), tobacco (+0.3 percent), other manufactured products (+0.6 percent), actual rentals and services for dwellings (+0.6 percent), communication (+1.0 percent) and other services (+1.7 percent). In contrast, cost declined for clothing and footwear (-0.6 percent), medical products (-3.7 percent), petroleum products (-7.4 percent) and transport (-1.7 percent). Prices remained unchanged for medical services.

On a monthly basis, consumer price  fell by 1.0 percent, following a 0.2 percent rise in December and in line with expectations. Prices declined for: food (-0.1 percent), fresh food (-0.4 percent), clothing and footwear (-16.7 percent), medical products (-0.1 percent),  other manufactured products (-0.5 percent), petroleum products (-3.6 percent), medical services (-0.3 percent) and transport (-3.7 percent). In contrast, cost rise for other services (+0.2 percent). Prices remained unchanged for other food, tobaccco and actual rentals and services for dwellings

In January, the core inflation indicator (ISJ) rose 0.1 percent month-on-month, the same pace as in the previous month. Compared to the same month last year, it rose by 0.9 percent, following a 0.8 percent rise in the preceding month.

The Harmonized Index of Consumer Prices (HICP) dropped 1.1 percent in January over a month, after a 0.2 percent rise in the previous month. Year-on-year, it rose 0.3 percent, unchanged from the preceding month.

French Inflation Confirmed at 0.2% YoY in January


Insee l Rida Husna | rida@tradingeconomics.com
2/18/2016 9:01:35 AM