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18 Feb, 2023 05:54

French inflation edges higher

Consumer prices in January in the Eurozone’s second-largest economy jumped 6% from a year ago, official data shows
French inflation edges higher

The cost of consumer goods in France jumped 6% in January in annual terms from 5.9% in December, conclusive data by the country’s statistics agency Insee showed on Friday.

The higher consumer price index (CPI) rate was prompted by an acceleration in food costs, which were up 13.3% year-on-year, and in energy prices, which soared 16.3%. The price increases of manufactured goods and those of services have slowed, according to Insee.

The report showed that seasonally adjusted, consumer prices increased by 0.8% over a month.

The core rate, which excludes items with volatile pricing such as unprocessed food and energy, increased to 5.6% in January from 5.3% in December. Meanwhile, the European harmonized CPI was up 0.4% on the month and 7% on the year.

According to a Bank of France forecast, inflation in the country will peak in the first half of 2023, after which it will gradually slow to about 2% by the end of 2024. In December, it was reported that French food manufacturers had asked retailers to raise product prices by 15-25% from the beginning of 2023 amid inflation and rising production costs.

Economists expect inflation in the country to start easing once increases in energy prices subside. Its Finance Minister Bruno Le Maire has said that the country’s top economic priority was to bring down energy prices and spiraling inflation.

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