Inflation in France rose to 6% in January, estimates INSEE


The rise in food and energy prices is the main cause of the rise in inflation in France in January.





SourceAFP


Consumer price inflation picked up slightly in January. The inflation rate is assessed by INSEE at 6% over one year. (illustrative image)
 © Stephanie Para / MAXPPP / PHOTOPQR/THE MOUNTAIN/MAXPPP

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Lhe unfavorable economic context continues. The rise in consumer prices accelerated slightly in January, with the inflation rate reaching 6% over one year after 5.9% in December, according to an initial estimate published on Tuesday 31 January by INSEE.

“This slight rise in inflation is due to the acceleration in food and energy prices”, respectively up 13.2% and 16.3% over one year, indicates the Institute National Institute of Statistics and Economic Studies in its press release. Energy prices “should rebound due to the rise in the price of petroleum products, partly due to the end of fuel discounts, and the regulated rise in gas prices”.

At 1er January 2023 have indeed ended the discount at the pump of 10 euro cents per liter and the 4% cap on gas price increases (in favor of a 15% cap in 2023). By comparison, energy prices rose 15.1% year on year in December and 19.9% ​​in January 2022.

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More expensive food products

As for food products, the rise in prices accelerated in January both for fresh products (+9.8% year on year after +9.3% in December 2022) and other food products (+13, 8% after + 12.6%). Conversely, the increase in the prices of services slowed down during the first month of 2023, falling from 2.9% to 2.6% over one year.

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The change in the cost of manufactured goods remained stable (+4.6% in December 2022 and in January 2023), while tobacco prices rose a little less rapidly than in December (+0.2% after + 0.3%).

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A reference figure for comparisons with other European countries, the harmonized consumer price index (HICP) stood at 7% over one year in January, after 6.7% in December. INSEE is due to publish a second estimate of inflation in January on February 17.




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