France: HICP inflation edges up in March

Preliminary data released by the National Statistical Institute (INSEE) on 30 March showed that consumer prices jumped from a flat reading in February to a 1.0% increase in March. A seasonal increase in the prices of manufactured goods and higher prices for tobacco products were largely behind the rise.

Inflation grew from 1.2% in February to 1.5% in March. Meanwhile, annual average inflation inched up from a 1.0% increase in February to 1.1% in March.

Harmonized consumer prices rose 1.1% month-on-month in March, coming in above February’s flat reading. Harmonized inflation rose from 1.3% in February to 1.7% in March. Lastly, annual average HICP inflation remained steady in March at the 1.2% increase observed in February.

France Inflation Forecast

FocusEconomics Consensus Forecast panelists expect HICP inflation to average 1.3% in 2018, which is up 0.1 percentage points from last month’s forecast. For 2019, panelists project that inflation will remain steady at 1.5%.