French Inflation Rate Turns Negative in January


Consumer prices in France dropped 0.4 percent year-on-year in January of 2015, following a 0.1 percent increase in the previous month. It is the first time since November 2009 the inflation turns negative, mainly due to lower cost of energy, manufactured products and food.

Year-on-year, costs declined for petroleum products (-15.9 percent), medical products (-2.8 percent), other manufactured products (-1.2 percent), clothing and footwear (-1.0 percent), food (-0.2 percent) and food excluding fresh food (-0.5 percent). In contrast, prices increased for fresh food (+1.6 percent), tobacco (+1.4 percent), actual rentals and services for dwellings (+1.2 percent), medical services (+0.8 percent), transport and communication services (+0.3 percent) and other services (+1.6 percent). 

On a monthly basis, the consumer price index declined 1.0 percent, after a 0.1 percent drop in December. The highest price decreases were reported for clothing and footwear (-16.5 percent), petroleum products (-6.0 percent), transport and communication services (-1.4 percent), other manufactured products (-0.5 percent) and medical products (-0.4 percent).

In January, annual core inflation accelerated to 0.2 percent after  registering a a 0.0 percent in the preceding month.

The harmonized index of consumer prices in January fell by 0.4 percent year-on-year and by 1.1 percent on monthly basis.

French Inflation Rate Turns Negative in January


Insee l Rida Husna l rida@tradingeconomics.com
2/19/2015 11:42:52 AM