French Inflation Rate Confirmed at 1%

The inflation rate in France was confirmed at 1.0 percent year-on-year in November of 2019, accelerating from a 0.8 percent rise in the previous month.
INSEE | Rafael Gonzalez | 12/12/2019 8:21:31 AM
Food prices rose faster (2.1 percent vs 1.8 percent in October), particularly those of fresh products rebounded (2.3 percent vs -0.1 percent); while tobacco cost sharply accelerated (15.3 percent vs 8.8 percent) due to a high tax rise. In addition, services prices gathered pace (1.3 percent vs 1.2 percent), as cost advanced faster for transport (2.1 percent vs 1.6 percent); communication (2.3 percent vs 0.9 percent) and housing-related services (0.8 percent vs 0.7 percent). Meantime, energy prices dropped at a softer pace (-0.6 percent vs -1.6 percent), mainly petroleum products (-1.9 percent vs -4.5 percent). 

On the other hand, manufactured product prices continued to fall (-0.6 percent vs -0.5 percent), as cost slumped for clothing & footwear (-0.2 percent vs 0.2 percent); “other manufactured products” (-0.2 percent vs -0.1 percent); furniture (-0.1 percent vs 0.8 percent) and health product (-3.0 percent, the same as in October). 

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, rose 1.0 percent in November, the same as in the previous month. 

On a monthly basis, consumer prices increased 0.1 percent, after a flat reading in the previous month, as prices rose faster for tobacco (6.0 percent vs a flat reading); energy (0.3 percent vs a flat reading) and food (0.1 percent vs -0.4 percent). Meanwhile, cost dropped for services (-0.2 percent vs -0.1 percent) and manufactured products (-0.1 percent vs 0.3 percent). 

The harmonized index of consumer prices increased by 1.2 percent from the previous year, following a 0.9 percent rise in October, while it rose by 0.1 percent month-over-month (vs -0.1 percent in October).

French Inflation Rate Confirmed at 1%