French Inflation Accelerates for the Second Straight Month

French annual inflation was reported at 0.3 percent in May of 2015, up from 0.1 percent in the previous month and matching market consensus, as a rise in prices of food and services offset a decline in cost of manufactured products and energy.

Year-on-year, cost increased for: food (+0.4 percent), fresh food (+6.4 percent), transport and communication services (+1.6 percent), other services (+1.5 percent), actual rentals and services for dwellings (+1.0 percent), tobacco (+0.3 percent) and clothing and footwear (+0.0 percent). In contrast, prices declined for: petroleum products (-6.3 percent), food excluding fresh products (-0.5 percent) and medical products (-3.1 percent) and other manufactured products (-0.2 percent).

On a monthly basis, the consumer price index increased 0.2 percent in May, following a 0.1 percent rise in the preceding month. Price increases were reported for all categories except medical products, actual rentals and services for dwellings and transport and communication services. Prices of fresh food rose the most by 3.2 percent, followed by petroleum products (+2.1 percent), clothing and footwear (+0.6 percent) and fresh food (+0.5 percent).(+2.3 percent). In contrast, cost of medical products declined by 0.5 percent and prices of actual rentals and services  services for dwelling fell 0.6 percent.

In May, the core inflation indicator (ISJ) grew by 0.2 percent (after +0.1 percent in March and April) and by 0.6 percent year-on-year (after +0.4 percent in April). 

The Harmonized Index of Consumer Prices (HICP) was up 0.2 percent over a month and by 0.3 percent year-on-year (after +0.1 percent month-on-month and year-on-year in April).

French Inflation Accelerates for the Second Straight Month

INSEE l Rida Husna l
6/11/2015 10:25:47 AM