France Inflation Rate Down to 1.2 Percent in January


In January 2013, the Consumer Price index decreased by 0.5 percent month-on-month, after a rise by 0.3 percent in December. Year-on-year, it rose by 1.2 percent (+1.3 percent in December). Excluding tobacco, the CPI went down also by 0.5 percent in January (+1.1 percent compared to January 2012).

Seasonally adjusted, the CPI grew by 0.1 percent in January (+1.2 percent, year on year). The largest downward pressure on the change in the CPI in January came mainly from seasonally price downturns in manufactured products, linked with winter sales. This decline was lightened by a rebound of energy prices and some upgrades in service rates which usually occurred in January. Furthermore, food prices decreased slightly in January.

In January 2013, prices of manufactured goods decreased by 2.3 percent (-0.2 percent year on year), drawn down by the winter sales. For this reason, clothing and footwear prices dropped by 11.3 percent in January (-10.9 percent in January 2012; +0.7 percent over a year). Likewise, prices for household appliances decreased by 1.3 percent (—0.8 percent in January 2012; -2.0 percent year on year), as those of furniture and furnishings by 2.1 percent (-2.3 percent in 2012; +0.7 percent year on year) and those of household textiles by 5.7 percent (-3.1 percent in 2012; +4.7 percent year on year).
 
In January 2013, energy prices rebounded significantly as a consequence of rising rates of gas (+2.4 percent; +6.6 percent year on year) and electricity (+2.7 percent; +5.9 percent year on year). After four consecutive months of decline, prices of petroleum products increased by 1.3 percent in January (-0.6 percent year on year) in the wake of the rise in crude oil prices.
 
Core inflation indicator rose by 0.1 percent in January 2013 (+0.8 percent year-on-year. after +0.7 percent in December). The harmonized Index of Consumer Prices decreased by 0.6 percent (+1.4 percent. year on year).

INSEE | Nuno Fontes | nuno@tradingeconomics.com
2/20/2013 8:56:06 AM