The consumer price index increased by 3.1% year-on-year in January in France, a clear slowdown compared to the inflation recorded in December (3.7%), INSEE confirmed on Friday. “This fall in inflation is due to the slowdown in energy prices in one year” (+1.9% compared to +5.7% in December 2023), “food prices (+5, 7% after + 7.2%) and manufactured products (+0.7% after +1.4%)”, details the INSEE in this second estimate of inflation, identical to the first, published at the end from January.
The price of services, on the other hand, increased a little more rapidly in January 2024 (+3.2%) than in December 2023 (+3.1%). Core inflation, an indicator closely scrutinized by central banks in their fight against rising prices, also slowed in early 2024, reaching 3%, down from 3.4% in December. This indicator measures inflation excluding certain products whose prices are especially volatile, such as food or energy.
Electricity, gasoline and diesel.
Specifically, the slowdown in energy inflation is explained, in particular, by the 3.6% drop in the price of gasoline in one year. The price of diesel fell 8.7% year-on-year in January, while that of electricity, however, jumped 23.2%. On the food side, fresh produce prices increased by 7.9% in January 2024 (up from +8.8% in December 2023). Inflation reached 5.3% in January for other food products, once again a clear slowdown compared to the last INSEE reading (+6.9%).
Finally, the slight increase in the cost of services is due, in particular, to the increase in transport prices (+4% in one year for rail transport, +8.7% for air transport), of services accommodation (+2.1%) and insurance (+7.4%). A reference indicator at the European level, the harmonized index of consumer prices (HICP) increased by 3.4% year-on-year in January, after an increase of 4.1% in December.
Source: BFM TV
