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Financial News: France Inflation Rises In January

France Inflation Rises In January

01/31/2018 - 03:32:00 (RTTNews)

(RTTNews) - France inflation increased in January on higher services and energy cost, the provisional estimate from the statistical office Insee showed Wednesday.

Consumer price inflation rose to 1.4 percent in January from 1.2 percent in the previous month. The rate was expected to remain at 1.2 percent.

The increase in the annual rate came from an acceleration in services and energy prices and a slight rebound in "manufactured product" prices whereas food and tobacco slowed down.

Month-on-month, consumer prices fell 0.1 percent, reversing a 0.3 percent rise in December. Nonetheless, this was slower than the expected drop of 0.3 percent.

Inflation, based on the harmonized index of consumer prices, accelerated unexpectedly to 1.5 percent from 1.2 percent in December. The HICP was forecast to climb 1.1 percent.

On a monthly basis, the HICP slid 0.1 percent, in contrast to December's 0.4 percent rise. Economists had forecast a 0.5 percent fall. Final data is due on February 22.

Another report from Insee showed that producer prices in the French market remained flat on month in December after gaining 1.5 percent in November. Year-on-year, producer prices in domestic market climbed 1.5 percent.

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