French inflation unexpectedly slowed to 5.9% (for the last twelve months) in December 2022. Inflation stood at 5.6% in September and 6.2% for both October and November.
The slowdown in the French inflation rate is mostly due to a decline in energy prices, and to a lesser extent, in services. The drop in energy prices resulted from a decline in the price of oil. Food prices increased at the same pace as in November while prices manufactured goods showed a slight acceleration. Food prices increased by 12.1% while services only went up by 2.9%.
Over the month of December alone, prices for goods and services declined by 0.1% following a +0.3% in November.
INSEE – the French Institute for Statistics – expects inflation to accelerate in France in early 2023. Energy prices – which are regulated in France – are due to increase by 15% as previously announced by the Government. Gas prices are set to increased in January and electricity prices will follow in February.
Note that this a flash reading and INSEE may revised upwards or downwards its estimate of inflation for December 2022.
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