France’s inflation figures tread water during May
CONSUMER price inflation (CPI) in France rose by 0.1 percentage point in May, but the annual rate of increase slowed to two per cent, the country’s national statistics institute Insee said yesterday.
Energy prices declined 1.6 per cent, but remained above analysts’ expectations due to a smaller than expected drop in the cost of petrol and heating oil.
The price of food bounced upwards by 3.4 per cent in May, having fallen by two per cent the previous month.
Exceptionally warm spring weather in the country has brought forward the usual seasonal price decline for many vegetables.
Non-energy industrial goods remained flat on the month, surprising analysts at Barclays Capital, who had forecast a decline.
In EU-harmonised terms, France’s CPI remained unchanged at 2.2 per cent, in line with expectations.