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Financial News: France's Inflation Highest Since 2012

France's Inflation Highest Since 2012

03/30/2018 - 03:44:00 (RTTNews)

(RTTNews) - France's consumer price inflation accelerated to the highest level in more than five years in March, flash data from the statistical office Insee showed Friday.

Consumer prices climbed 1.5 percent on year in March, faster than the 1.2 percent rise seen in February. The rate exceeded the expected 1.4 percent and was the highest since October 2012, when inflation stood at 1.9 percent.

The increase in annual inflation resulted from an acceleration in prices of services, food products and tobacco.

On a monthly basis, consumer prices recovered sharply in March, by rising 1 percent after stability in the previous month. Economists had forecast a 0.8 percent increase.

Inflation, based on the harmonized index of consumer prices, increased to 1.7 percent from 1.3 percent in February. This was also above the forecast of 1.5 percent.

Month-on-month, the HICP rose 1.1 percent after remaining stable. The index was forecast to climb 0.8 percent.

Producer prices in the domestic market gained 0.1 percent on month in February taking the annual growth to 1.5 percent, Insee said in a separate report.

On all markets, producer prices rose 0.2 percent month-on-month in February, reversing a 0.1 percent drop in January. Annual growth accelerated to 1.1 percent from 0.6 percent in January.

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