France: Inflation records lowest level in more than three years
March 13, 2013
In February, consumer prices rose 0.29% over the previous month, which contrasted the 0.51% drop registered in January. The result came in below market expectations of a 0.50% increase. The monthly reading mainly reflected seasonal price rises in services related to the winter holidays as well as an increase in petroleum product prices.
Annual inflation, however, dropped from 1.2% in January to 1.1% in February, marking the lowest level recorded in more than three years.
The core inflation index, which excludes more volatile items such as oil, fruit and vegetables, declined 0.20% over the previous month, which contrasted the 0.10% increase in January. Annual core inflation inched down from 0.8% in January to 0.6% in February.
Finally, annual HICP inflation (based on the harmonized index of consumer prices) inched down from 1.4% in January to 1.2% in February. Annual average HICP moderated to 2.0% from 2.1% in January.
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%.