France: Harmonized inflation remains stable in November
Harmonized inflation came in at 7.1% in November, matching October’s reading. November’s figure represented the highest inflation rate since our current records began. The stable print was driven by increasing food and transport prices, and declining housing and utilities costs.
Annual average harmonized inflation rose to 5.6% in November (October: 5.3%). Meanwhile, consumer price inflation was steady, coming in at October’s 6.2% in November. Finally, harmonized consumer prices increased 0.47% in November over the previous month, a smaller increase than October’s 1.24% rise.
Commenting on the outlook, Charlotte de Montpellier, senior economist at ING, noted:
“Inflation in France is expected to rise further […]. Indeed, due to regulations and contracts, many price revisions can only take place once a year, usually at the beginning of the year. [Moreover] the revision of the cap and the end of fuel rebates could add up to one percentage point to French inflation from January. […] The peak of inflation in France should therefore only be reached later in 2023, and French inflation will fall much less rapidly than in neighbouring countries.”