France Inflation Rate Revised Down Slightly To 1.3%


Consumer prices in France rose 1.3 percent year-on-year in January of 2017, lower than a preliminary figure of 1.4 percent rise but much faster than a 0.6 percent gain in December. It was the highest inflation rate since November 2012, mainly driven by a surge in cost of energy and a faster increase in prices of food and services while cost of manufactured products fell much less than in a prior month.

Year-on-year, upward prices pressure came from: food (1.3 percent), fresh food (9.0 percent), other food (0.1 percent), tobacco (+0.1 percent), clothing & footwear (5.1 percent), petroleum products (19.9 percent), actual rentals and services for dwellings (0.3 percent), health (0.3 percent), transport (1.1 percent) and other services (1.3 percent). In contrast, downward prices pressure was recorded for: medical products (-2.5 percent), other manufactured products (-0.7 percent) and communication (-01.1 percent). 

On a monthly basis, consumer prices fell 0.2 percent, after gaining 0.3 percent in the prior month and in line with expectations. Prices declined for: clothing and footwear (-12.4 percent), other manufactured products (-0.4 percent), transport (-3.5 percent) and communication (-3.4 percent). In contrast, cost rose for: food (0.4 percent), fresh food (2.8 percent), other food (0.1 percent), petroleum products (7.5 percent), healthcare (0.2 percent) and other services (0.4 percent). Cost was flat for: tobacco and actual rentals and services for dwellings.

In January, core inflation indicator (ISJ) went up 0.4 percent on the month, following a 0.1 fall in December. Compared to the same month a year earlier, it rose 0.7 percent, following a 0.4 percent rise in the preceding month.

The Harmonized Index of Consumer Prices (HICP)declined by 0.3 percent on the month, following a 0.3 percent rise in a month earlier while markets expected a 0.2 percent drop. Year-on-year, it rose 1.6 percent, compared to a 0.8 percent rise in December.

France Inflation Rate Revised Down Slightly To 1.3%


Insee l Rida Husna | rida@tradingeconomics.com
2/21/2017 10:11:37 AM