French Inflation Rate at Nearly 6-Year High of 2% in May

The French consumer price inflation is expected to rise to 2 percent year-on-year in May of 2018 from 1.6 percent in the previous month, a preliminary estimate showed. It is the highest rate since August 2012, as cost of energy should jump while prices of food is estimated to rise at a faster pace.

In May, cost of energy should increase 10 percent year-on-year, after a 6.3 percent rise in April. In addition, prices should rise at a faster pace for: food (1.7 percent from 1.6 percent), of which fresh food (4.9 percent from 3.9 percent) and other food (1.1 percent from 1.2 percent). Meantime, services inflation is expected to stood at 1.4 percent, the same as in April. Tobacco prices should advance 16.1 percent, compared to 16.5 percent in the previous month. Meantime, manufactured products prices are expected to fall by 0.2 percent, after a 0.3 percent drop in April.

On a monthly basis, consumer prices should increase 0.4 percent, faster than a 0.2 percent rise in the previous month. The sharper rise should result from those of energy prices, due to the dynamism of petroleum product prices. Food prices should grow more than in the previous month, as manufactured product prices. Services prices should rise at the same pace as in the previous month and those of tobacco should edge down after a stability in April.

The harmonised index of consumer prices is expected to rise by 2.3 percent from the previous year; and by 0.4 percent month-over-month.

French Inflation Rate at Nearly 6-Year High of 2% in May

Insee l Rida |
5/31/2018 7:23:59 AM