French Consumer Prices Update

(Reuters) – French consumer prices increased slightly less than anticipated in January, preliminary data from statistics agency INSEE showed on Friday.

France’s harmonized inflation rate, adjusted for comparison with other euro zone countries, was 1.8% year-on-year in January, exactly the same figure as in the previous month, INSEE said.

INSEE noted that prices of manufactured goods rebounded while energy prices sped up. This was countered by a slowdown in services and tobacco prices. Meanwhile, food prices remained virtually stable.

On a month-on-month basis, prices fell by 0.2% in January after a 0.2% rise in December. This decrease was attributed to seasonal drops in winter clothing, footwear, and transport prices, which offset increases in insurance, energy, food, and tobacco prices.

A poll of 21 economists surveyed by Reuters had, on average, expected a 1.9% rise in the harmonized consumer price index in the first month of the year, with estimates ranging from 1.7% to 2.2%.