According to the preliminary report from INSEE, consumer prices increased 0.2% in March after remaining unchanged in February. Economists had expected prices to rise by 0.4%. This slight rise in prices should be mainly due to that of manufactured products, particularly clothing and footwear. The prices of services should slow down, while those of food should rebound slightly. Conversely, energy prices should fall again over the month.
In annual terms, CPI rose again by 0.8%, recording the weakest increase since February 2021. Economists had expected an increase of 1.0% per year. The acceleration in service prices, particularly insurance, and in food prices, especially fresh products, should be offset by the falls in the prices of energy and, to a lesser extent, in manufactured products. Those of tobacco should slow down slightly.
The data also showed that in March, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in France with inflation in European countries - rose 0.2% on a monthly basis and by 0.9% per year. In February, HICP increased by 0.1% m/m and by 0.9% per annum.
In addition, INSEE reported that in February, household consumption expenditures on goods decreased by 0.1% after declining by 0.6% in January (revised from -0.5%). Economists had expected growth of 0.3%. This decline is driven by the downturn in food consumption (-0.7%). Conversely, engineered goods consumption increased slightly (+0.2%), as did energy consumption (+0.2%).