Inflation steady at 2.2% over one yr in France, in response to INSEE | EUROtoday

Consumer costs elevated by 2.2% year-on-year in France in May, as in April, in response to provisional knowledge printed by INSEE on Friday May 31. In element, this stability of inflation can be as a result of a slight slowdown over one yr within the rise in costs of companies and tobacco, offset nonetheless by a powerful acceleration for power costs, as a result of an impact primary, explains the National Institute of Statistics and Economic Studies.

The costs of manufactured merchandise (steady over one yr after −0.1% in April) and meals (+1.3% after +1.2%) advanced over one yr at a degree near that of final month . Although power costs fell between April and May 2024, they fell way more between April and May 2023, notes INSEE.

Consumer costs can be steady over one month, in response to these provisional estimates, after rising by 0.5% in April. This value stability over one month can be as a result of each a pointy drop in power costs, significantly petroleum merchandise, offset by will increase within the costs of meals and, to a lesser extent, manufactured merchandise.

Prices of companies and tobacco can be steady over one month. Finally, the harmonized client value index (HICP, which is used for European comparisons) would improve by 2.7% in May 2024 over one yr, after 2.4% in April, whereas decelerating over one month, to +0.2% after +0.6% in April.

The distinction in improvement between the HICP and the patron value index (CPI) might be defined by the drop in reimbursements within the well being sector and by the change over one yr in power costs, whose weight is larger within the HICP, explains INSEE.

Increase in power spending in April

France's gross home product (GDP) grew by 0.2% within the first quarter of 2024, supported by international commerce, as family consumption was decrease than anticipated, in response to the statistical institute.

This improve in GDP between January and March, nonetheless, marks a slowdown in comparison with the expansion of 0.3% recorded within the fourth quarter of 2023, revised upwards by 0.2 factors. Growth for the yr 2023 can also be elevated from 0.9% to 1.1% by INSEE.

As for family consumption, it fell considerably in April, reducing by 0.8% in comparison with March, with a decline in meals expenditure (− 2.7%) and a reasonable improve in power consumption (+ 1.3%), in response to a press launch from INSEE printed on Friday.

This drop follows a rise of 0.5% in March, a determine barely revised upwards by INSEE (0.4% initially introduced), meals consumption having been pushed up in March “by Easter Sunday positioned in March this year”. Over one yr, family consumption elevated barely, by 0.2%.