Annual Inflation in France at 1.4%


In November 2012, month-on-month, seasonally adjusted inflation was 0.1% and 1.4% compared to November 2011 according to a release by the National Institute of Statistics and Economic Studies.

The largest downward pressures on the change in the CPI of November resulted mainly from a new decrease in energy prices (especially a new drop in petroleum product prices.) It reflected also the continuation of the marked decrease in telecom prices and a drop in aerial transport fares. There were minor downward and upward pressures from other prices in November. Excluding tobacco, the CPI went down by 0.2% in November (+1.3% compared to November 2011). In November 2012, prices of tobacco were stable but remained very dynamic year-on-year (+6.9%, the same rate than in November 2011).

Energy prices declined by 1.2% in November, they rose by 2.7% year-on-year. This decline in November came mainly from a new drop in petroleum product prices (–2.0%; +1.2% year-on-year), especially from fuels for transport prices (–2.3% in November after –1.4% in October). Those prices slowed down, growing by 0.3% year-on-year in November. Heat fuel prices decreased also in November by 1.4% (after –1.0% in October) but increased significantly year-on-year (+4.6%). Gas and electricity prices were stable in November. They grew respectively by 8.3% and 3.2% year-on-year in November.

In November 2012, service prices fell by 0.2% compared to October. Over a year, they increased by 1.1%. Food prices were steady. After a substantial rise in October (+4.9%), prices of fresh food products decreased, month-on-month, by 1.1% in November. Overall, prices of manufactured products went up by 0.5% (0.% month-on-month). Clothing and footwear prices stabilized in November in comparison with October and went up by 1.2% year-on-year. Changes in prices of the other manufactured products were more mixed: Most of the upward pressure came from a seasonal rise in flower and plant prices (+16.4%; +7.7% year-on-year) and in jewellery, clocks and watches (+1.2% in November, like in November 2011; +5.7% year-on year) and in a lesser manner in perfumery and beauty products (+0.4% in November; +1.6% year-on-year).

Core inflation indicator remained unchanged in November 2012 compared to October and slipped year-on-year (+0.7% in November after +0.9% in October). In November, the harmonized Index of Consumer Prices (HICP) declined by 0.2% over a month but increased by 1.6% year-on-year (+2.1% in October).


INSEE | Nuno Fontes | nuno@tradingeconomics.com
12/12/2012 4:56:02 PM