French Inflation At 14-Month High

French Inflation At 14-Month High

France’s inflation rose to a 14-month high in April on higher energy and services prices, preliminary data from the statistical office Insee showed on Friday.

In a separate communiqu?, the statistical office showed that household consumption declined sharply in March due to the significant fall in manufactured goods purchases.

Consumer price inflation rose to 1.3 percent in April, as expected, from 1.1 percent in March. This was the highest since February 2020, when the rate was 1.4 percent.

The increase resulted from the acceleration of the service prices and those of energy. Services cost gained 1.3 percent and energy prices grew 8.8 percent. Meanwhile, food prices were down 0.3 percent.

Month-on-month, consumer prices climbed 0.2 percent but weaker than the March’s 0.6 percent increase. Monthly inflation also matched economists’ expectations.

On a yearly basis, inflation based on the harmonized index of consumer prices advanced to 1.7 percent from 1.4 percent in March. The rate was forecast to climb to 1.6 percent.

The HICP grew 0.3 percent on month versus the 0.7 percent rise in the previous month. The expected rate was 0.1 percent. Final data is due on May 12.

Another report from the Insee showed that the producer prices for the home market sped up sharply to 4.5 percent annually in March from 1.9 percent in February.

On a monthly basis, producer prices increased 1.0 percent versus a 0.9 percent rise in the previous month.

Household spending decreased unexpectedly by 1.1 percent on month in March, in contrast to a 0.3 percent rise in February and economists’ forecast of +0.4 percent.

The decline was largely driven by a 3.7 percent fall in manufactured goods purchases. Meanwhile, energy spending grew 1.3 percent and food consumption rose 0.8 percent.