France consumer prices were stable over one month and increased by 0.3% year on year

According to the report from Insee, in April 2020, the Consumer Price Index (CPI) was stable over a month, after +0.1% in the previous month. Economists had expected a 0.1% increase. The drop in energy prices (−4.2% after −3.9%) was offset by the rebound in those of food prices (+1.8% after −0.1%). After a 0.2% drop in March, service prices were stable in April.

Those of manufactured products were unchanged too, after +1.4% in March. Finally, tobacco prices were stable over a month. Seasonally adjusted, consumer prices fell by 0.1% in April, after −0.6% in March.

Year on year, consumer prices slowed down for the third consecutive month, to +0.3%, after +0.7% in March. Economists had expected a 0.4% increase. The sharp drop in inflation came from an accentuation of the drop in the prices of energy and manufactured products and a slowdown in service and tobacco prices. Contrariwise, food prices gathered pace year on year.

Year on year, core inflation sharply fell in April: +0.3% after +0.7% in the previous month. The Harmonised Index of Consumer Prices (HICP) was stable over a month, after +0.1% in March; year on year, it slowed down for the third consecutive month, to +0.4%, after +0.8% in the previous month.