French Inflation Rate Quickens to 1.3% in April


France's annual inflation rate increased to 1.3 percent in April 2019 from 1.1 percent in March and slightly above an initial estimate of 1.2 percent. Prices rose faster for services and they fell slightly less for manufactured products.

Prices advanced at a faster pace for services (1.0 percent vs 0.6 percent in March), as cost rebounded for transport services (0.5 percent vs -0.9 percent), especially those of air transport (3.3 percent vs -3.3 percent); and health (0.1 percent vs -0.2 percent). In addition, prices rose further for other services (1.8 percent vs 1.4 percent) and decreased at a softer pace for communication (-3.0 percent vs -3.3 percent) and actual rentals and services for dwellings (-0.1 percent vs -0.2 percent). Meantime, inflation was steady for tobacco (at 8.1 percent) and food (at 2.5 percent), amid a slowdown in fresh food prices (3.7 percent vs 4.2 percent), namely fresh fuit (0.5 percent vs 1.3 percent); fresh vegetables (3.3 percent vs 3.6 percent) and fish expenses (4.5 percent vs 6.0 percent).

On the other hand, energy inflation slowed down (4.8 percent vs 5.1 percent), driven by petroleum cost (5.7 percent vs 6.0 percent). Manufactured products prices posted a smaller decrease (-0.5 percent vs -0.6 percent), of which clothing & footwear (-0.2 percent vs -0.3 percent) and medical products (-2.5 percent vs -2.7 percent).

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, rose to 0.7 percent in April from 0.5 percent in March.

On a monthly basis, consumer prices went up 0.3 percent in April, slightly above an earlier figure of 0.2 percent and compared to a 0.8 percent rise in March. Softer prices were observed for manufactured products (0.1 percent vs 2.1 percent); energy (0.6 percent vs 1.1 percent) and tobacco (0.1 percent vs 7.3 percent). In contrast, cost for services accelerated (0.5 percent vs 0.2 percent) and food prices rebounded very slightly (0.1 percent vs -0.2 percent).

The harmonized index of consumer prices increased by 1.5 percent from the previous year (vs 1.3 percent in March) and by 0.4 percent month-over-month (vs 0.9 percent in March).

French Inflation Rate Quickens to 1.3% in April


INSEE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
5/15/2019 7:58:49 AM