French Inflation Rate At 5-Month Low Of 0.8% In May


Consumer prices in France are set to rise 0.8 percent year-on-year in May of 2017, compared to a 1.2 percent gain in April, preliminary estimates showed. It was the lowest inflation rate since December 2016, mainly due to a marked slowdown in cost of food and energy while cost of manufactured products continued to fall.

Year-on-year, prices went up at a slower pace: food (0.4 percent from 0.7 percent in the prior month, namely fresh food: -0.3 percent and other food: 0.5 percent) and energy (5.4 percent from 9.3 percent). Cost of services went up 1.0 percent from, unchanged from the previous month. In contrast, prices fell for manufactured products (-0.7 percent from -0.7).

On a monthly basis,  consumer prices  are expected to increase 0.1 percent, the same as in the previous month. 

The Harmonized Index of Consumer Prices (HICP) rose 0.1 percent on the month, following a 0.1 percent increase in a month earlier . Year-on-year, it rose 0.9 percent, slower than a 1.4 percent gain in the prior three months.

Insee l Rida Husna | rida@tradingeconomics.com
5/31/2017 7:03:57 AM