French Records Deflation for Third Straight Month


Consumer prices in France dropped by 0.1 percent year-on-year in March of 2015, following a 0.3 percent fall in the previous month. It is the third time since November 2009 the inflation turns negative, mainly due to lower cost of energy and manufactured products.

Year-on-year, costs declined for petroleum products (-8.7 percent), medical products (-3.2 percent), other manufactured products (-0.7 percent) and food excluding fresh food (-0.6 percent). In contrast, prices increased for fresh food (+5.1 percent), food (+0.1 percent), tobacco (+0.3 percent), actual rentals and services for dwellings (+0.9 percent), medical services (+0.5 percent), transport and communication services (+0.9 percent) and other services (+1.3 percent). 

On a monthly basis, the consumer price index accelerated 0.7 percent in March, the same pace as in the preceding month. The highest price increases were reported for all categories except for medical products, medical services and transport and communication services. Prices of clothing and footwear rose the most by 12.6 percent, followed by petroleum products (+2.9 percent) and fresh food (+2.3 percent). Meanwhile, cost of medical products declined by 0.7 percent, followed by medical services (-0.2 percent) and food excluding fresh food (-0.1 percent).

In March, annual core inflation accelerated to 0.2 percent after registering a 0.1 percent increase in the preceding month.

The harmonized index of consumer prices in March was recorded at 0.0 percent year-on-year, following a 0.3 percent drop in February. On a monthly basis, the index accelerated to 0.7  percent, unchanged from the preceding month.

French Records Deflation for Third Straight Month


Insee l Rida Husna l rida@tradingeconomics.com
4/15/2015 9:29:31 AM