France сonsumer price growth accelerated in December - INSEE

According to the report from INSEE, in December 2019, the Consumer Prices Index (CPI) accelerated to +0.4% over a month, after +0.1% in November. This rise resulted from higher prices in energy (+0.8% after +0.3%) and food (+0.6% after +0.1%) and a rebound in the prices of services (+0.5% after −0.2%) and manufactured products (+0.2% after −0.1%). Tobacco prices were stable after a 6.0% rise in the previous month. Seasonally adjusted, consumer prices rose by 0.3% in December, after +0.2% in November.

Year on year, consumer prices gathered pace for the second consecutive month: +1.5% after +1.0% in November and +0.8% in October. Economists had expected a 1.4% increase. This rise in inflation came from a sharp rebound in energy prices, a slight acceleration in those of services and a lesser drop in those of manufactured products. Food and tobacco prices rose at the same pace as in the previous month.

Year on year, core inflation barely increased in December: +1.1% after +1.0% in the previous month. The Harmonised Index of Consumer Prices (HICP) rose by 0.5% over a month, after +0.1% in November; year on year, it accelerated to +1.6%, after +1.2% in the previous month.