French Inflation Rate Falls to 17-Month Low

The inflation rate in France is expected to fall to 1.1 percent year-on-year in March 2019 from 1.3 percent in the previous month, a preliminary estimate should. That should be the lowest rate since October 2017, as prices of services, food and tobacco are set to rise at a softer pace.

Prices are expected to rise at a softer pace for: services (0.6 percent vs 0.9 percent in February); food (2.5 percent vs 3.1 percent), of which fresh food (4.1 percent vs 8.3 percent) and other food products (2.2 percent vs 2.1 percent); and tobacco (8.1 percent vs 14 percent). In addition, manufactured products prices should drop 0.5 percent, the same pace as in February. By contrast, energy inflation is likely to accelerate to 5.1 percent from 3.2 percent.

On a monthly basis, consumer prices are set to climb 0.8 percent in March after being unchanged in February. Manufactured product prices should rebound after the end of winter sales in February. Those of services and tobacco should rise after a stability in the previous month. Contrariwise, energy prices should slow down and food prices should fell back due to an accentuated decrease in fresh product prices.

The harmonised index of consumer prices is expected to rise by 1.3 percent from the previous year (vs 1.6 percent in February) and by 0.9 percent month-over-month (vs 0.1 percent in February).

French Inflation Rate Falls to 17-Month Low

INSEE | Joana Ferreira |
3/29/2019 9:23:51 AM