BusinessInflation peaks at 6.3%, slightly higher than expected

Inflation peaks at 6.3%, slightly higher than expected


She continues to progress relentlessly. Inflation reached 6.3% y/y in France in February, driven by a sharp rise in food prices, which became its main driver, not energy, according to the final estimate, revised by Insee on Wednesday, March 15, slightly upward. The National Institute of Statistics previously estimated consumer price growth at 6.2% yoy in February, which has already marked an acceleration compared to January (6%).

“This increase in inflation is due to the acceleration product prices, which jumped 14.8% for the year (after 13.3% in January), he said in a press release. This trend affects both fresh products (15%), especially vegetables and fruits, and stale products (14.8%), such as bread, cereals, meat, sugar, jam, chocolate or drinks. Prices for services (3% after 2.6%) – food, accommodation, transport, rent, etc. – and manufactured goods (4.7% after 4.5%), such as furniture and toys, also continued to grow.

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Energy prices, on the other hand, slowed down (14.1% year-on-year in February after 16.3% in January), mainly due to lower oil and gas prices. On the other hand, electricity prices were driven by limited growth in regulated tariffs. However, inflation should gradually ease to 5% in June, as INSEE forecast in early February.


ML (with AFP)

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Source: TF1

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