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France: Growth in consumer prices accelerates in May

June 11, 2015

In May, consumer prices rose 0.2% over the previous month. The reading was slightly above April’s 0.1% increase and matched market expectations. According to the national statistical institute (INSEE), the result came on the back of increases, which were partially seasonal, in prices of food and services related to tourism. In addition, petroleum products and some manufactured products also contributed to the increase in consumer prices.

Inflation reached 0.3% in May, which was above April’s 0.1% increase and marked a six-month high. Core consumer prices, which do not take into account volatile categories such as fresh food and energy prices nor regulated prices, rose 0.2% over the previous month, slightly above April’s 0.1% increase. Core inflation inched up from 0.4% in April to 0.6% in May.

Harmonized consumer prices (based on the harmonized index of consumer prices, HICP) rose 0.2% over the previous month, which came in above April’s 0.1% increase. On an annual basis, harmonized consumer prices rose 0.4% in May (April: +0.1% year-on-year). Annual average HICP inflation inched down from April’s 0.3% to 0.2% in May, marking the lowest value since February 2010.

The government expects inflation to average 0.9% in 2015. FocusEconomics Consensus Forecast panelists expect HICP inflation to average 0.2% in 2015, which is unchanged from last month’s forecast. For 2016, panelists project that inflation will accelerate to 1.1%.


Author:, Economist

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France Inflation Chart


France Inflation May 2015

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: National Institute of Statistics and Economic Studies (INSEE).


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