French March Inflation Rate Revised Up to 1.6%


The French consumer price inflation stood at 1.6 percent year-on-year in March 2018, slightly above the preliminary estimate of 1.5 percent, as energy cost rose more than initially thought and manufactured products prices fell less than previously estimated. March's inflation came in stronger than the previous month's 1.2 percent, hitting its highest level since October 2012.

Prices rose at a faster pace for: services (1.4 percent vs 1.1 percent in February); food (1.5 percent vs 0.8 percent), of which fresh food (2.8 percent vs -1.3 percent) and other food (1.2 percent, the same as in February); and tobacco (16.6 percent vs 4.9 percent). On the other hand, energy inflation slowed to 5 percent in March (vs a preliminary 4.9 percent) from 5.2 percent in the previous month, while manufactured products prices fell by 0.3 percent (vs a preliminary -0.4 percent), after a 0.1 percent rise in February.
 
Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, edged up to 0.9 percent in March from 0.8 percent in February.
 
On a monthly basis, consumer prices rose 1 percent in March, the steepest gain on record, after being flat in February. This rise came from a rebound in manufactured products prices after the end of winter sales (2.1 percent vs -0.3 percent) and in food prices (0.4 percent vs -0.1 percent). Furthermore, tobacco prices rose markedly (13.2 percent) and those of services accelerated over one month (0.4 percent vs 0.1 percent). On the other hand, energy prices fell 0.7 percent in the wake of petroleum product prices.
 
The harmonised index of consumer prices rose by 1.7 percent from the previous year; and by 1.1 percent from the previous month.

French March Inflation Rate Revised Up to 1.6%


INSEE, France | Chusnul Ch Manan | chusnul@tradingeconomics.com
4/12/2018 8:20:48 AM