French December Inflation Rate Unchanged at 7-Month High

French consumer price inflation is expected to remain unchanged at 1.2 percent year-on-year in December 2017, in line with market expectations, the preliminary estimate showed. The inflation rate stood at its highest level since April.

Year-on-year, upward pressure should come from: tobacco (6 percent from 4.4 percent in November); energy (5.1 percent from 5.4 percent); food (1.3 percent from 1.5 percent), of which fresh food (2.6 percent from 3.6 percent) and other food (1.1 percent, the same as in November); and services (1 percent, the same as in November). In contrast, prices of manufactured products edged down 0.1 percent, after a 0.2 percent decline in the previous month.

On a monthly basis, consumer prices should rise by 0.3 percent in December, after a 0.1 percent gain in November. This sharper rise should come from a rebound in services prices and in manufactured product prices. On the other hand, energy prices should slow down in the wake of those of petroleum product prices. Tobacco prices should decelerate too. Lastly, food prices should be stable over one month.

The harmonised index of consumer prices is expected to rise by 1.3 percent from the previous year; and by 0.4 percent from the previous month.

French December Inflation Rate Unchanged at 7-Month High

INSEE | Joana Ferreira |
1/5/2018 7:57:01 AM