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France Inflation Eases to 0.8% in December, INSEE’s Provisional Estimate Shows

Cheaper energy drove the year-over-year slowdown as food prices picked up and final figures are due on January 15.

Évolution des prix à la consommation en France, en glissement annuel (%)

Overview

  • Consumer prices rose 0.8% from a year earlier in December after 0.9% in November, according to INSEE’s preliminary reading.
  • On a monthly basis, CPI rebounded 0.1% after a 0.2% decline in November, reflecting seasonal increases in service prices, notably transport, and a slight rise in food.
  • Energy prices fell 6.8% year over year, a steeper drop than in November, with petroleum products leading the decline.
  • Food inflation accelerated to 1.7% from 1.4% in November, while manufactured goods prices fell 0.4% and services and tobacco held at 2.2% and 4.1% respectively.
  • The harmonised index (HICP) rose 0.7% year over year and 0.1% month over month, providing a basis for euro-area comparisons.