According to the preliminary report from INSEE, consumer prices remained unchanged in May after rising 0.5% in April. Economists had expected an increase of 0.2%. This price stability should be due to the sharp fall in energy prices, particularly petroleum products, offset by increases in prices of food and, to a lesser extend, of manufactured products. Prices for services and tobacco should be stable over one month.
In annual terms, CPI rose 2.2% after a similar increase in April. Economists had expected an increase of 2.4% per annum. Food prices increased by 1.3%, accelerating compared to April (+1.2%), while the cost of fresh food increased by 3.5% after a 0.7% decrease in April. Meanwhile, prices for services rose by 2.7% after an increase of 3.0% in April. Weaker price increases were also recorded for tobacco (8.7% vs. 9.0% in April). Energy prices jumped by 5.8%, accelerating compared to April (+3.8%).
The data also showed that in April, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in France with inflation in European countries - rose by 0.2% on a monthly basis and by 2.7% per annum. In April, HICP increased by 0.6% m/m and by 2.4% per annum.