French May Inflation Rate Confirmed at Near 6-Year High
The consumer price inflation rate in France rose to 2 percent year-on-year in May 2018 from 1.6 percent in the previous month, in line with the preliminary estimate. It was the highest rate since August 2012, as cost of energy surged and prices of food and services increased at a faster pace.
In May, cost of energy increased 10 percent year-on-year, after a 6.3 percent rise in April. In addition, prices rose at a faster pace for: food (1.8 percent from 1.6 percent), of which fresh food (5 percent from 3.9 percent) and other food (1.2 percent, the same pace as in April); and services (1.5 percent from 1.4 percent). Meanwhile, tobacco prices advanced 16.1 percent, compared to 16.5 percent in the previous month; while manufactured products prices fell by 0.2 percent, after a 0.3 percent drop in April.
Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, increased to 1 percent in May from 0.8 percent in April.
On a monthly basis, consumer prices increased 0.4 percent in May, matching preliminary estimates and following a rise of 0.2 percent in the previous month. Main upward pressure came from: energy (2 percent from 0.9 percent); food (0.9 percent from 0.1 percent); and manufactured products (0.3 percent from 0.1 percent). Services prices increased at the same pace as in the previous month (0.1 percent) and those of tobacco dropped by 0.6 percent after remaining unchanged in April.
The harmonised index of consumer prices went up by 2.3 percent from the previous year; and by 0.5 percent month-over-month.
INSEE, France l Chusnul Ch Manan | chusnul@tradingeconomics.com
6/14/2018 9:08:41 AM