An increase of 0.6% over one year
After two months of stability, the Consumer Price Index (CPI) has gone up slightly according to the latest estimates of the National Institute of Statistics and Economic Studies (INSEE). Indeed, after two successive increases in October (+ 0.4%) and November (+ 0.5%), consumer prices rose by 0.6% in December 2016, compared to prices posted in December 2015. This is the largest increase since May 2014. The increase in energy and food prices during this period is responsible for this rebound. Thus, according to these first estimates, the prices applied in the food market are up 0.7% in December 2016. As for the prices applied to energy, they increased by 4.3 % over one year. On the other hand, prices of manufactured goods fell by 0.9% while prices of services remained stable.
Inflation remains far from the ECB’s objectives
Taking into account the one-month price increase, the consumer price index rose 0.3% between November and December. The harmonized consumer price index (HICP) shows an increase of 0.3% over one month and 0.8% over one year. This index is used to compare price developments in the different countries of the euro area. If the figures of France remain positive, the fact remains that the country’s inflation remains far from the target of 2% set by the Foriegn Bank. For 2017, forecasts are on the rise thanks to the rise in oil prices, which should continue. INSEE is planning inflation of 1% in the first half of the year, while the Banque de France forecasts inflation of 1.2%.