France Inflation

France

France: Energy continues to drive inflation in April

May 12, 2011

In April, consumer prices rose 0.3% over the previous month, less than half the 0.8% increase recorded in March. Annual inflation inched up from 2.0% in March to 2.1% in April, in line with market expectations. According to the National Statistical Institute (INSEE), the April reading reflected rising prices for energy (+1.3% month-on-month) as well as higher prices for manufactured products (+0.6% mom). The core inflation index, which excludes more volatile categories such as oil as well as fruit and vegetables, rose 0.3% in April, matching March's result. Annual core inflation rose from 0.7% in March to 1.0%. Finally, annual average HICP inflation (based on the harmonised index of consumer prices) remained unchanged at March's 1.9%.


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