Inflation slowed in France in March to 5.6% over one year, once morest 6.3% in February, according to an initial estimate published Friday by the National Institute of Statistics and Economic Studies (Insee). The slowdown in consumer price inflation is explained by a much slower rise in energy prices in March, just under 5%, where they had climbed by almost 30% between March 2021 and March 2022, just following the outbreak of war in Ukraine.
More the rise in food prices took over and accelerated further to reach 15.8% over one year in March, according to INSEE. In detail, fresh products rose by 16.6% over one year (following 15% in February), and other food products by 15.6% ( once morest 14.8%). Tobacco prices also soared, rising 7.8% year on year following rising just 0.2% the previous month. The year-on-year growth rate of the prices of services and manufactured goods is, on the other hand, almost stable.
At 5.6%, the rise in the consumer price index is 0.1 points above the consensus of financial data provider Factset. Benchmark indicator for European comparisons, the harmonized index of consumer prices (HICP) rose by 6.6% in March, following inflation of 7.3% over one year recorded in February. The slowdown in inflation in France comes the day following the publication of similar data by Germany and Spain. INSEE is due to publish its final estimate for the month of March in mid-April.
INSEE also unveiled the figures for theHousehold consumption in February saw a decline of 0.8% compared to the previous month. The French spent less on food and manufactured goods. After a rebound revised upwards by 1.7% in January, household consumption expenditure suffered from a sharp decline of 1.2% in purchases of food goods and 0.9% for those of goods manufactured in a context of high inflation, while energy consumption remained almost stable (+0.1%), said the National Institute of Statistics.
