French сonsumer price index rose more than expected in January

According to the provisional estimate from INSEE, over a year, the Consumer Price Index (CPI) should rise by 0.6% in January 2021, after being stable in the previous month. Economists had expected a 0.4% increase. This increase in inflation should result from the acceleration of service prices and that of tobacco prices and from a rebound in manufactured goods prices, due to the offset of winter sales. The decrease in the energy prices should soften in the wake of petroleum product prices. The food prices should grow, year on year, at the same rate as in the previous month.

Over one month, consumer prices should rise by 0.2%, as in December. The food prices should rebound and those of tobacco should grow after being stable in the previous month. The prices of manufactured goods should fall less than in the last month. The energy prices should rise at the same rate as in the previous month and those of services should slow down.

Year on year, the Harmonised Index of Consumer Prices should rise by 0.8% after being stable in December. Over one month, it should increase by 0.3% after +0.2% in the previous month.