French November Inflation Rate Confirmed at 7-Month Low

France's inflation rate stood at 1.9 percent in November 2018, unrevised from the preliminary estimate and below October's final reading of 2.2 percent. It was the lowest inflation rate since April, as prices of services, energy, food and tobacco rose at a softer pace.
INSEE | Joana Ferreira | 12/13/2018 8:16:22 AM
Services inflation eased to 1 percent in November from 1.2 percent in the previous month, with upward pressure coming from health services (unchanged at 0.3 percent), transport (0.3 percent vs 0.5 percent) and other services (2 percent vs 2.1 percent), while declines were seen in communication (-3.6 percent vs -1.9 percent) and actual rentals and services for dwellings (-0.3 percent, the same as in October). Prices also rose at a slower pace for: energy (11.2 percent vs 13.8 percent) such as petroleum products (14.7 percent vs 20.7 percent); food (1.9 percent vs 2.2 percent) such as fresh food (5 percent vs 7 percent) and other food (unchanged at 1.4 percent); and tobacco (14.5 percent vs 16.8 percent).

By contrast, manufactured products prices continued to fall (-0.3 percent vs -0.4 percent), led by declines in costs of medical products (-2.2 percent vs -2.3 percent) and clothing and footwear (-0.1 percent vs flat reading). Meanwhile, other manufactured products prices rose 0.2 percent in November, after being unchanged in the previous month.

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures edged down to 0.7 percent in November from 0.8 percent in October.

On a monthly basis, consumer prices dropped 0.2 percent in November, also unrevised from the preliminary estimate and following a 0.1 percent advance in October. This downturn resulted from that in services prices (-0.3 percent vs flat reading) and in energy prices (-0.7 percent vs 1.8 percent). Food prices dropped by 0.2 percent, as in the previous month, the downturn in fresh food prices being offset by higher prices in other food products. Contrariwise, manufactured product prices rose by 0.1 percent after showing no growth in October.

The harmonised index of consumer prices rose by 2.2 percent from the previous year (vs 2.5 percent in October); and fell by 0.2 percent month-over-month (vs 0.1 percent in October).

French November Inflation Rate Confirmed at 7-Month Low