France CPI Drops for 2nd Straight Month


France consumer prices fell 0.1 year-on-year in March of 2016, following a 0.2 percent drop in February and matching estimates. It is the second straight month of drop as a decline in cost of manufactured products and energy offset an increase in cost of food and services.

Year-on-year, cost fell for: medical products (-3.2 percent), petroleum products (-13.2 percent) and transport (-1.4 percent). In contrast, prices rose for: food (+0.4 percent),  fresh food ( +1.6 percent) and other food (+0.2 percent), clothing and footwear (+0.2 percent), other manufactured products (+0.4 percent), actual rentals and services for dwellings (+0.5  percent), communication (+0.8 percent) and other services (+1.3 percent). Prices remained unchanged for tobacco.

On a monthly basis, consumer prices rose 0.7 percent, up from 0.3 percent in the preceding month and in line with expectations. Prices were up for: food (+0.5 percent), fresh food (+3.6 percent),  clothing and footwear (+11.9 percent), other manufactured products (+0.4 percent), petroleum products (+2.5 percent), communication (+0.7 percent) and other services (+0.2 percent). Prices remained unchanged for tobacco. In contrast, cost declined for: medial products (-0.2 percent) and transport (-0.5 percent).

In March, core inflation indicator (ISJ) rose 0.1 percent month-on-month after remaining unchanged in February. Compared to the same month last year, it dropped by 0.1 percent, the same pace as in the preceding month.

The Harmonized Index of Consumer Prices (HICP) rose 0.8 percent in March over a month, after a 0.3 percent increase in the previous month. Year-on-year, it declined by 0.1 percent, the same pace as in February.

France CPI Drops for 2nd Straight Month


Insee l Rida Husna | rida@tradingeconomics.com
4/13/2016 8:52:59 AM