French Inflation Rate Unchanged at 5-1/2-Year High



The French consumer price inflation is expected to remain at 1.6 percent year-on-year in April 2018, unchanged from the previous month's five-and-a-half-year high, a preliminary estimate showed. Prices should rise at a faster pace for food and energy while services inflation is expected to slow.

Year-on-year, prices should rise at a faster pace for: food (1.6 percent vs 1.5 percent), of which fresh food (3.9 percent vs 2.8 percent) and other food (1.2 percent, the same pace as in March); and energy (6.2 percent vs 5 percent). On the other hand, services inflation is expected to ease to 1.3 percent in April from 1.4 percent in the previous month and tobacco prices should advance 16.5 percent, compared with 16.6 percent. Meantime, manufactured products prices are expected to fall by 0.3 percent, the same pace as in March.
 
Over one month, consumer prices should increase 0.1 percent in April after the rebound of 1 percent in the previous month. This deceleration should result from the seasonal decline in manufactured product prices, as well as stable tobacco prices after a sharp rise in March. Services prices should slow, as well as those of food because of fresh products. In contrast, the prices of petroleum products should rebound strongly this month.
 
The harmonised index of consumer prices is expected to rise by 1.8 percent from the previous year; and by 0.1 percent month-over-month.

French Inflation Rate Unchanged at 5-1/2-Year High


INSEE, France l Chusnul Ch Manan | chusnul@tradingeconomics.com
4/27/2018 8:18:19 AM