Inflation in January is significantly slowing compared to the previous month. The consumer price index increased by 3.1% over one year in January in France, while it stood at 3.7% in December, confirmed the National Institute of Statistics and Economic Studies (Insee), Friday February 16.
“This drop in inflation results from the one-year slowdown in energy prices (+1.9%, compared to +5.7% in December 2023), “food (+5.7% after +7.2%) and manufactured products (+0.7% after +1.4%)”, details the institute in this second estimate of inflation, identical to the first, published at the end of January. The price of services, on the other hand, increased a little more quickly in January 2024 (+ 3.2%) than in December 2023 (+ 3.1%).
An indicator closely scrutinized by central banks in their fight against rising prices, underlying inflation also slowed at the start of 2024, to stand at 3%, compared to 3.4% in December – this indicator measures inflation by excluding certain products whose prices are particularly volatile, such as food or energy.
Slowdown in the rise in energy prices
In detail, the slowdown in energy inflation is explained in particular by the drop of 3.6% over one year in the price of gasoline. The price of diesel fell by 8.7% year-on-year in January, while that of electricity jumped by 23.2%.
On the food side, fresh products increased by 7.9% in January 2024 (compared to + 8.8% in December 2023). Inflation reached 5.3% in January for other food products, again a clear slowdown compared to the latest INSEE reading (+6.9%).
Finally, the slight increase in the cost of services results in particular from an increase in transport prices (+ 4% over one year for rail transport, + 8.7% for air transport), accommodation services (+ 2 .1%) and insurance (+7.4%).
A benchmark indicator at European level, the harmonized consumer price index (HICP) increased by 3.4% year-on-year in January, after an increase of 4.1% in December.