France: HICP inflation reaches multi-year high in May
June 14, 2018
Revised data released by the National Statistical Institute (INSEE) on 14 June showed that consumer price growth picked up from the 0.2% month-on-month increase recorded in April to a 0.4% rise in May. May’s print reflected higher prices for energy products, food and manufactured goods.
Inflation in May jumped from April’s 1.6% increase to an almost six-year high of 2.0%. Meanwhile, annual average inflation inched up from April’s 1.1% to 1.2% in May.
Harmonized consumer prices rose 0.5% month-on-month in May, up from April’s revised 0.2% print (previously recorded: +1.2% month-on-month). Harmonized inflation rose from 1.8% in April to 2.3% in May, the highest reading since August 2012. Finally, annual average HICP inflation came in at 1.3% in May, above April’s 1.2% rise.
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 average inflation will increase to 1.5%.