French Inflation Rate Accelerates in February

French consumer prices increased to 0.9 percent year-on-year in February of 2014, after remaining steady at 0.7 percent in each of the previous three months. On a monthly basis, prices accelerated to 0.6 percent after a decline of 0.6 percent in January.

The rebound of the CPI in February came mainly from the end of winter sale and its impact on clothing and footwear prices, and in a lesser manner, on manufactured product prices. In February 2014, some upward pressures came also from seasonal upturns in service prices linked with winter holidays while the prices of energy and food stayed little dynamic.

Year-on-year, tobacco prices rose the most (7.0 percent), followed by prices of transport and communication services (2.6 percent) and clothing and footwear (2.5 percent). Cost of services increased 1.9 percent and rentals for dwellings went up 1.6 percent.

Downward pressures came from prices of petroleum products (-5.4 percent), medical products (-2.6 percent), fresh food and energy (-1.2 percent each). 

Core inflation rate grew by an annual 0.5 percent after a decrease of 0.4 percent in January.

The EU harmonized CPI increased by 0.6 percent in February and by 1.1 percent year-on-year (after +0.8 percent year-on-year in January).

French Inflation Rate Accelerates in February

INSEE | Joana Taborda |
3/13/2014 9:23:24 AM