French Inflation Rate at 5-1/2-Year High in March

The French consumer price inflation is expected to rise to 1.5% year-on-year in March from 1.2% in the previous month and in line with market consensus, a preliminary estimate showed. It is the highest inflation rate since October 2012.

Year-on-year, prices should rise at a faster pace for: services (1.4 percent vs 1.1 percent in February); food (1.5 percent vs 0.8 percent), of which fresh food (2.8 percent vs -1.3 percent) and other food (1.2 percent, the same as in February); and tobacco (16.6 percent vs 4.9 percent). On the other hand, energy inflation is set to slow to 4.9 percent from 5.2 percent in the previous month, while manufactured products prices are expected to fall by 0.4 percent, after a 0.1 percent rise in February.

On a monthly basis, consumer prices are set to rise 1 percent, the steepest gain on record, after being flat in February. This increase should come from a rebound in manufactured products prices after the end of winter sales and from a sharp rise in tobacco prices. Services prices should accelerate, as well as those of food because of fresh products. On the other hand, energy prices should decline.

The harmonised index of consumer prices is expected to rise by 1.7 percent from the previous year; and by 1.1 percent from the previous month.

French Inflation Rate at 5-1/2-Year High in March

Insee l Rida Husna |
3/30/2018 7:52:01 AM