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


Consumer prices in France rose 0.8 percent year-on-year in May of 2017, slowing from a 1.2 percent rise in the prior month and matching preliminary figures. It was the lowest inflation rate since December 2016, as cost of food and energy increased less than in a month earlier while cost of manufactured products continued to fall.

Year-on-year, prices went up at a slower pace for food (0.4 percent from 0.7 percent in April), of which fresh food (-0.3 percent) and other food (0.5 percent), followed by tobacco (2.6 percent from 2.8 percent), energy (5.3 percent from 9.3 percent), of which petroleum products (8.1 percent), and services (0.9 percent from 1.0 percent), of which actual rentals and services for dwellings (0.5 percent), health (1.0 percent), transport (1.7 percent) and other services (1.4 percent). In contrast, price fell for manufactured goods (-0.7 percent from -0.7 percent).

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, rose 0.4 percent, slowing from 0.5 percent in April.

On a monthly basis, consumer prices were flat, after gaining 0.1 percent in April. A rebound in food prices, particularly fresh products, offset by a fall in energy prices and, to a lesser extent, in tobacco prices. Services prices were stable and the prices of manufactured products grew at the same pace as in the prior month.

The harmonised index of consumer prices rose 0.9 percent from the previous year and were flat month-over-month.

Insee l Rida Husna | rida@tradingeconomics.com
6/15/2017 7:31:47 AM