According to the final report from INSEE, consumer prices were unchanged in May, as expected, after rising by 0.5% in April. The stability in prices is the result of the decrease in prices of energy (-1.2% after -0.3%) due to the downturn in prices of petroleum products (-2.4% after +0.7%), which is offset by the rise in prices of food (+0.4% after +0.1%) generated by the strong acceleration in those of fresh products (+2.9% after +0.2%). For the prices of manufactured products, they increase slightly (+0.1% after 0.0%) as for those of services (+0.1% after +1.0%).
In annual terms, CPI rose by 2.3%, accelerating compared to April (+2.2%). Economists had expected an increase of 2.2%. This slight increase resulted in a rise in energy prices (+5.7% after +3.8%) due to a base effect on prices of petroleum products (+2.9% after -0.7%). The prices of food accelerated slightly year-on-year (+1.3% after +1.2%). Contrariwise the prices of services slowed down (+2.8% after +3.0%) as for those of tobacco (+8.7% after +9.0%) slowed down. Manufactured product prices were stable (after -0,1%).
Meanwhile, the core CPI grew by 1.7% per annum, slowing down compared to April (+1.9% per annum).
The data also showed that in May, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in France with inflation in European countries - rose by 0.1% on a monthly basis and by 2.6% per annum. In April, HICP increased by 0.6% for the month and by 2.4% per annum.