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Financial News: French Inflation Accelerates More Than Expected In May

French Inflation Accelerates More Than Expected In May

05/31/2018 - 03:43:00 (RTTNews)

(RTTNews) - France's consumer price inflation accelerated at a faster-than-expected pace in May, mainly driven by higher energy prices, preliminary figures from the statistical office Insee showed Thursday.

Consumer prices climbed 2.0 percent year-over-year in May, faster than the 1.6 percent rise in April. Economists had expected the inflation to increase to 1.8 percent.

Energy prices grew notably by 6.3 percent annually in May and food prices went up by 1.6 percent.

On a monthly basis, consumer prices rose 0.4 percent from April, when it edged up by 0.2 percent. The expected increase was 0.2 percent.

The EU measure of inflation, or HICP, grew 2.3 percent yearly in May, faster than the 1.8 percent rise in April. That was below the expected climb of 2.1 percent.

Month-on-month, the HICP increased 0.4 percent after a 0.2 percent gain in April. Prices were expected to grow by 0.3 percent.

Another report from the statistical office showed that producer prices in the French market dropped 0.7 percent monthly in April, reversing a 0.4 percent increase in March.

The decrease in April was largely due to lower prices of mining and quarrying products, energy and water. Annually, producer prices grew 2.3 percent.

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