French Inflation Rate Slows in March

French annual consumer prices decelerated in March of 2014 to 0.6 percent, the lowest rate since October last year. On a monthly basis, prices rose 0.4 percent, down from 0.6 percent in February.

Year-on-year, prices of petroleum products decreased 6 percent and fresh food cost went down 3.3 percent as supply was spurred by favorable weather conditions in recent months. Prices of medical products fell 3 percent, energy cost declined 1.6 percent and prices of manufactured products contracted 0.8 percent. 

The highest upward pressure came from tobacco cost (+7 percent yoy) and prices of services (+1.8 percent). 

As in February, the increase in the CPI in March came from the recovery in manufactured product prices after the period of sales, especially from its impact on clothing and footwear prices, and from seasonal pressures in service prices linked with the winter vacation period. On the other hand, energy prices and, in a lesser manner, food prices showed downward trends.

Core inflation rate grew by an annual 0.4 percent, slowing from a 0.5 percent increase in February. 

The EU harmonized CPI increased by 0.5 percent in February and by 0.7 percent year-on-year.

French Inflation Rate Slows in March

INSEE | Joana Taborda |
4/10/2014 9:29:16 AM