France Reports Deflation For Second Straight Month


Consumer prices in France dropped 0.3 percent year-on-year in February of 2015, following a 0.4 percent fall in the previous month. It is the second 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 (-12.1 percent), medical products (-3.0 percent), clothing and footwear (-2.6 percent), other manufactured products (-1.2 percent), food (-0.2 percent) and food excluding fresh food (-0.5 percent). In contrast, prices increased for fresh food (+3.9 percent), food (+0.1 percent), actual rentals and services for dwellings (+0.9 percent), medical services (+0.8 percent), transport and communication services (+0.9 percent) and other services (+1.6 percent). Meanwhile, prices remained stable for tobacco.

On a monthly basis, the consumer price index accelerated 0.7 percent in February, after a 1.0 percent drop in the preceding month. The highest price increases were reported for all categories except for medical products. Prices petroleum products rose the most by 4.7 percent, followed by clothing and footwear (+4.5 percent), fresh food (+1.3 percent), transport and communication services (+0.8 percent), other manufactured products (+0.6 percent). Prices declined only for medical products (-0.3 percent), 

In February, annual core inflation accelerated to 0.1 percent year-on-year after  registering a 0.2 percent in the preceding month.

The harmonized index of consumer prices in January fell by 0.3 percent year-on-year. On a monthly basis, the index accelerated to 0.7  percent.

France Reports Deflation For Second Straight Month


Insee l Rida Husna l rida@tradingeconomics.com
3/12/2015 9:55:11 AM