French November Inflation Rate Confirmed at 1.2%

French consumer prices rose by 1.2 percent year-on-year in November of 2017, matching the preliminary estimate and following a 1.1 percent gain in the prior month. It was the highest inflation rate since April, driven by higher prices of energy and tobacco while cost of manufactured goods declined less.

Year-on-year, prices advanced faster for: energy (5.4 percent from 4.8 percent in October), namely cost of petroleum products (8.6 percent from 7.4 percent) and those of city gas (4.1 percent from 3.3 percent); and tobacco (4.4 percent from 2.4 percent). Meantime, cost increased at the same pace for food (1.5 percent) and services (1 percent). In addition, prices of manufactured goods went down 0.2 percent, after decreasing 0.3 percent in the previous month.

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, stood at 0.5 percent for the fifth consecutive month.

On a monthly basis, consumer prices rose by 0.1 percent in November, in line with a preliminary reading, the same pace as in October. This increase is due in particular to rising energy prices and an increase in those of tobacco. Prices for services and manufactured goods were down slightly. Food prices slowed down sharply due to lower prices for fresh produce, which rebounded markedly in October.

The harmonized index of consumer prices increased by 1.2 percent from the previous year; and edged up by 0.1 percent from the previous month.

French November Inflation Rate Confirmed at 1.2%

INSEE, France l Luisa Carvalho |
12/14/2017 9:36:11 AM