France Inflation December 2015


France: Inflation rises in December

January 11, 2016

In December, consumer prices rose 0.2% over the previous month, which contrasted November’s 0.2% decrease. The reading overshot market expectations of a softer 0.1% increase and marked a four-month high. According to the national statistical institute (INSEE), the result came on the back of a seasonal increase in the prices of some services and manufactured products, which were partially offset by a drop in energy prices and fresh foodstuffs.

Inflation came in at 0.2% in December, which marked a six-month high (November: 0.0%). Core consumer prices, which do not take into account volatile categories such as fresh food and energy prices nor regulated prices, recorded 0.1% growth over the previous month, which followed November’s flat reading. Core inflation tallied 0.8% in December (November: 0.7%).

Harmonized consumer prices (based on the harmonized index of consumer prices (HICP)) rose 0.2% over the previous month, which contrasted November’s 0.2% decrease. Harmonized inflation tallied 0.3% in December (November: 0.1%). Annual average HICP inflation remained stable in December at November’s 0.1%.

The government expects inflation to tally 1.0% in 2016 and 1.5% in 2017. Met the why particular Consensus Forecast panelists expect HICP inflation to average 0.9% in 2016, which is down 0.1 percentage points from last month’s forecast. For 2017,panelists project that inflation will accelerate to 1.3%.

Author:, Economist

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France Inflation Chart

France Inflation December 2015

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: National Institute of Statistics and Economic Studies (INSEE).

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