French February Inflation Rate Weaker than Expected

The French consumer price inflation is expected to ease to 1.2 percent year-on-year in February 2018 from a five-year high of 1.3 percent in the previous month and below market consensus of 1.5 percent, the preliminary estimate showed.

Prices should rise at a softer pace for: food (0.8 percent vs 1.2 percent), of which fresh food (-1.5 percent vs 1.8 percent) and other food (1.2 percent vs 1.1 percent); services (1.1 percent vs 1.3 percent); and tobacco (4.9 percent vs 5.8 percent). On the other hand, upward pressure should come from: energy (5.2 percent, the same as in January); and manufactured products (0.1 percent vs flat reading).

On a monthly basis, consumer prices should remain unchanged in February, after a 0.1 percent fall in January. Food prices should edge down, in the wake of fresh product prices. Those of manufactured product should decrease again, but less markedly than in January. Services prices should slow down. Lastly, energy prices should be stable, the decrease in petroleum product prices being offset by a rise in gas and electricity prices.

The harmonised index of consumer prices is expected to rise by 1.4 percent from the previous year; and to remain unchanged from the previous month.

French February Inflation Rate Weaker than Expected

INSEE | Joana Ferreira |
2/28/2018 8:24:32 AM