France: Inflation rises in December
January 11, 2016
In December, consumer prices rose 0.2% over the previous month, which contrasted November’s 0.2% decrease. The reading overshot market expectations of a softer 0.1% increase and marked a four-month high. According to the national statistical institute (INSEE), the result came on the back of a seasonal increase in the prices of some services and manufactured products, which were partially offset by a drop in energy prices and fresh foodstuffs.
Inflation came in at 0.2% in December, which marked a six-month high (November: 0.0%). Core consumer prices, which do not take into account volatile categories such as fresh food and energy prices nor regulated prices, recorded 0.1% growth over the previous month, which followed November’s flat reading. Core inflation tallied 0.8% in December (November: 0.7%).
Harmonized consumer prices (based on the harmonized index of consumer prices (HICP)) rose 0.2% over the previous month, which contrasted November’s 0.2% decrease. Harmonized inflation tallied 0.3% in December (November: 0.1%). Annual average HICP inflation remained stable in December at November’s 0.1%.
Author: Eric Denis , Economist