France Inflation

France

France: Energy continues to drive inflation in May

June 15, 2011

In May, consumer prices rose 0.1% over the previous month, slightly below the 0.3% increase recorded in April. Annual inflation inched down from 2.1% in April to 2.0% in May, which diverged from market expectations as analysts expected the rate to remain at 2.1%. According to the National Statistical Institute (INSEE), the May reading reflected rising prices for food, which were partially offset by lower energy and transport prices. The core inflation index, which excludes more volatile categories such as oil as well as fruit and vegetables, rose 0.1% in May, which was below the 0.3% increase in April. Annual core inflation inched up from 1.0% in April to 1.1%. Finally, annual average HICP inflation (based on the harmonized index of consumer prices) remained unchanged at April's 1.9%.


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