France: Inflation rises in May from April
Latest reading: Harmonized consumer prices were up 2.8% in annual terms in May, following a 2.5% increase in the previous month. May’s reading was the strongest since February 2024.
Relative to the previous month’s data, there were higher price pressures for transportation (+8.5% on a year-on-year basis vs +8.2% in April) and housing and utilities (+2.9% vs +1.7% in April). In contrast, there were reduced price pressures for food and non-alcoholic beverages (+1.2% vs +1.4% in April) and restaurants and hotels (+2.8% vs +3.3% in April). Finally, the variation in recreation prices was the same as in the prior month (-0.4% in May and April).
Meanwhile, consumer prices rose 2.4% on a year-on-year basis in May, following a 2.2% rise in the prior month.
Lastly, harmonized consumer prices rose 0.14% in May on a month-on-month basis, following a 1.15% rise in the prior month.
Panelist insight: ING’s Charlotte de Montpellier commented:
“Overall, the latest figures are in line with our expectations. The inflationary process is not yet over, and price growth could continue to firm in the coming months. That said, the risk of a renewed inflation shock similar to 2022 remains very limited, largely because domestic demand is weak. As a result, French inflation is likely to remain lower than in neighbouring eurozone economies in the near term.”