France: Inflation eases to lowest level in over two years
December 12, 2012
In November, consumer prices fell 0.2% over the previous month, which contrasted the 0.2% increase recorded in October. The monthly reading reflected lower prices for energy and services. Annual inflation dropped from 1.9% in October to 1.4% in November, the lowest level since August 2010, which was below market expectations of a 1.6% rate.
The core inflation index, which excludes more volatile items such as oil, fruit and vegetables, was flat over the previous month, and followed a 0.1% drop in October. Annual core inflation fell from 0.9% in October to 0.7%, its lowest level since February 2011.
Finally, HICP inflation (based on the harmonized index of consumer prices) inched down from 2.1% in October to 1.6%. Annual average HICP also moderated falling to 2.3% from 2.4% in October.