France Consumer Prices Drop for 2nd Month

Consumer prices in France are set to decline 0.2 year-on-year in March of 2016, the same pace as in the preceding month. It is the second consecutive month of drop, as a further decline in cost of energy and manufactured products offset a faster increase in prices of food.

Year-on-year, prices rose for food (+0.4 percent in March from +0.2 percent in the preceding month). Among food, cost of fresh food rose 1.2 percent (from +0.4 percent) and prices of other food products rose 0.3 percent (from +0.2 percent). Cost of services also rose 0.8 percent, unchanged from the previous month. Prices remained unchanged for tobacco. In contrast, cost declined for energy (-7.0 percent from -6.8 percent) and manufactured products (-0.2 percent from -0.1 percent).

On a month-on-month basis, consumer prices are expected to rise 0.7 percent, following a 0.3 percent rise in a month earlier, mainly due to a seasonal price upturn in manufactured product after the end of winter sales.

The harmonised index of consumer prices is set to fall 0.1 percent year-on-year in March 2016, the same pace as in January. On a monthly basis, consumer prices  rose 0.8 percent, compared to 0.3 percent rise in the preceding month.

France Consumer Prices Drop for 2nd Month

Insee l Rida Husna |
3/31/2016 8:41:14 AM