France Inflation

France

France: Inflation remains steady in November

December 14, 2010

Consumer prices rose 0.1% in November, mirroring the result seen in October. Annual inflation remained unchanged since September at 1.6%, which came in a notch below market expectations of a 1.7% inflation rate. According to the National Statistical Institute (INSEE), the moderate November increase reflected higher energy prices (+0.9% month-on-month) and food (+0.5% mom), which were partially offset by lower prices of manufactured products (-0.2% mom) and services (-0.1% mom). The core inflation index, which excludes more volatile categories such as oil, fruits and vegetables, fell 0.1% in November after a flat reading in October. As a result, annual core inflation dropped to 0.7% after a reading of 0.8% registered in the previous two months. Annual average harmonised inflation (HICP) increased from 1.5% in October to 1.7%.


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