France Inflation


Inflation eases on lower energy prices

In May, consumer prices fell 0.1% over the previous month, which contrasted the 0.1% increase recorded in April. The monthly drop came in on the back of lower prices for energy and transport. Annual inflation inched down from 2.1% in April to 2.0% in May, the lowest level since July 2011, in line with market expectations.

The core inflation index, which excludes more volatile categories such as oil, fruit and vegetables, added 0.1% over the previous month, which followed the flat reading in April. As a result, annual core inflation remained unchanged at April's 1.4%.

Finally, HICP inflation (based on the harmonized index of consumer prices) inched down to 2.3% from 2.4% in April. Annual average HICP, however, remained unchanged at April's 2.5%.


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