According to the preliminary report from INSEE, in December consumer prices rose by 0.1% after a 0.2% decline in November. Economists had expected an increase of 0.2%. This rebound should be due to the prices of services and in particular those of transports. Prices of food should be steady over one month, while the prices of manufactured products and energy should decrease compared to the previous month.
In annual terms, CPI growth accelerated to 3.7% from 3.5% per annum in November. Economists had expected an increase of 3.8% per annum. Energy prices rose by 5.6% after an increase of 3.1% in November, while service price growth accelerated to 3.1% from 2.8%. Prices for manufactured goods rose by 1.4% after an increase of 1.9% in November, and food price growth slowed to 7.1% (17-month low) from 7.7%.
The data also showed that in December, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in France with inflation in European countries - rose 0.1% on a monthly basis and by 4.1% per annum. In November, HICP fell by 0.2% mom and rose by 3.9% per annum.