French Inflation Rate Rises to 7-Month High in November


French consumer prices are expected to rise by 1.2 percent year-on-year in November 2017, following a 1.1 percent rise in the previous month, the preliminary estimate showed. It was the highest inflation rate since April, as cost of energy, tobacco and services increased further and prices of manufactured products fell at a softer pace.

Year-on-year, upward pressure should come from: energy (5.5 percent from 4.8 percent in October); tobacco (4.4 percent from 2.4 percent); services (1.1 percent from 1 percent); and food (1.5 percent, the same as in October), of which fresh food (3.6 percent from 4.5 percent) and other food (1.1 percent, the same as in October). In contrast, prices of manufactured products fell 0.2 percent, after a 0.3 percent decline in the previous month.

On a monthly basis, consumer prices should rise by 0.1 percent in November, the same pace as in the previous month. This new slight increase should result from an acceleration in energy prices, a lesser fall in services prices and an increase in tobacco prices. On the other hand, food prices should slow down, due to a downturn in fresh food prices, which sharply rebounded in the previous month.

The harmonised index of consumer prices is expected to rise by 1.3 percent from the previous year; and by 0.1 percent from the previous month.

French Inflation Rate Rises to 7-Month High in November


Insee l Rida Husna | rida@tradingeconomics.com
11/30/2017 9:20:59 AM