Consumer prices decreased by 0.2% in France
Seasonally adjusted, it grew by 0.7%, after +0.1% in December. Year on year, the CPI accelerated sharply (+1.3% after +0.6%). Inflation has reached its highest level since November 2012.
Over one month, the fall was due to the seasonal decline in manufactured product prices, essentially those of clothing and footwear. However, this decrease was less strong than in January 2016, mainly because winter sales started later this year.
The overall drop was mitigated by the sharp acceleration in energy prices and, to a lesser extent, in food prices.
In January 2017, energy prices sped up strongly (+4.5%) after already four consecutive months of increase.
Year on year, they strenghtened sharply (+10.3% after +4.3% in the previous month). It has been the strongest rise since November 2011.
This dynamism resulted mainly from a drastic rise in petroleum products prices (+7.5%; +19.9% year on year), due to a rebond in Brent crude and to higher taxation of energy products.
Natural gas and city gas prices accelerated sharply too (+5.0% after +2.4%).
Year on year, they went up for the first time since September 2015 (+1.6% after −2.2%). By contrast, electricity prices have been unchanged since September 2016 (−0.3% year on year). ■