France: Inflation ends downward trend in May
June 12, 2013
In May, consumer prices added 0.1% over the previous month, which contrasts the 0.2% drop registered in April but was in line with market expectations. The monthly increase mostly reflected higher prices for food and non-alcoholic beverages.
After falling to its lowest level since November 2009 in April (0.7% year-on-year), inflation quickened somewhat in May, inching up to 0.8%.
Meanwhile, the core inflation index, which excludes more volatile items such as oil, fruit and vegetables, rose 0.2% over the previous month, which contrasted the 0.3% drop seen in April. Annual core inflation inched up from 0.4% in April to 0.5% in May.
Finally, annual HICP inflation (based on the harmonized index of consumer prices) inched up from 0.8% in April to 0.9% in May. Nonetheless, annual average HICP moderated to 1.6% from 1.7% in April.
FocusEconomics Consensus Forecast panellists expect HICP inflation to average 1.5% in 2013, which is down 0.1 percentage points from last month's forecast. Next year, panellists project inflation to average 1.8%.
Author: Ricardo Aceves, Senior Economist