French January Inflation Rate Revised Down to 1.3%


The French consumer price inflation edged up to 1.3 percent in January of 2018 from 1.2 percent in December and slightly below a preliminary estimate of 1.4 percent. Still, it was the highest inflation rate since January last year, mostly due to rising prices of energy and services while those of manufactured products were unchanged. Meantime, cost slowed for food and tobacco.

Year-on-year, prices rose faster for: energy (5.2 percent vs 5 percent in December) and services (1.3 percent vs 1 percent). Meantime, those of manufactured goods were stable, after dropping 0.1 percent in the prior month. 

Conversely, cost slowed for food (1.2 percent vs 1.3 percent), namely fresh food (1.8 percent vs 2.6 percent) and tobacco (5.8 percent vs 6 percent).

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, increased to 0.9 percent from 0.6 percent in the previous month. It was the highest rate in over 2 years.

On a monthly basis, consumer prices decreased 0.1 percent, in line with the preliminary reading, after rising 0.3 percent in December. Manufactured product prices fell 2.2 percent, of which clothing and footwear (-12 percent) due to winter sales; transport prices declined 4.7 percent and tobacco went down 0.2 percent. This was offset by a sharp increase in prices of energy (4.7 percent) and food (0.3 percent).

The harmonised index of consumer prices inched up 1.5 percent from the previous year and decreased 0.1 percent from the previous month.

French January Inflation Rate Revised Down to 1.3%


INSEE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
2/22/2018 9:51:34 AM