France: Inflation drops in January
February 20, 2013
In January, consumer prices fell 0.5% over the previous month, which contrasted the 0.3% rise registered in December. The monthly reading mainly reflected seasonally price declines in manufactured products related to winter sales as well as a mild decrease in food prices. Annual inflation, dropped from 1.3% in December to 1.2% in January marking the lowest level recorded in three years. The result contrasted market expectations that had inflation inching up to 1.4%.
The core inflation index, which excludes more volatile items such as oil, fruit and vegetables, rose 0.1% over the previous month, which was down from the 0.2% increase in December. Annual core inflation inched up from 0.7% in December to 0.8% in January.
Finally, HICP inflation (based on the harmonized index of consumer prices) inched down from 1.5% in December to 1.4%. Annual average HICP moderated to 2.1% from 2.2% in December.