France Consumer Prices Flat in May


France consumer prices remained unchanged from a year earlier in May of 2016, following a 0.2 percent drop in April and escaping preliminary estimates of a 0.1 percent fall. A decline in cost of manufactured products and energy offset an increase in cost of food and services.

Year-on-year, cost declined for: medical products (-3.5 percent), other manufactured products (-0.1 percent), petroleum products (-10.4 percent) and transport (-3.2 percent). In contrast, prices rose for: food (+1.0 percent),  fresh food ( +5.8 percent) and other food (+0.2 percent), clothing and footwear (+0.2 percent), actual rentals and services for dwellings (+1.1  percent), medical services (+0.2 percent), communication (+2.7 percent) and other services (+1.4 percent). Prices remained unchanged for tobacco.

On a monthly basis, consumer prices rose 0.4 percent, up from 0.1 percent in the preceding month and in line with expectations. Prices were up for: food (+1.0 percent), fresh food (+7.5 percent), clothing and footwear (+0.8 percent), other manufactured products (+0.1 percent), petroleum products (+4.1 percent), communication (+0.7 percent) and other services (+0.2 percent). In contrast, cost fell for: medical products (-0.3 percent) and transport (-1.1 percent). Prices remained unchanged for: other food,  tobacco, actual rentals and services for dwellings and medical services. 

In May, core inflation indicator (ISJ) rose 0.1 percent month-on-month, the same pace as in April. Compared to the same month a year earlier, it went up by 0.7 percent after gaining 0.6 percent in the preceding month

The Harmonized Index of Consumer Prices (HICP) rose 0.5 percent in April over a month, after a 0.1 percent increase in the previous month. Year-on-year, it rose 0.1 percent, compared to a 0.1 percent drop in April.

France Consumer Prices Flat in May


Insee l Rida Husna | rida@tradingeconomics.com
6/15/2016 8:28:42 AM