January 31, 2024 08:04 GMT
Acceleration In Services Inflation Despite Lower-than-expected Headline Print
FRANCE DATA
While the headline French flash inflation metrics printed below consensus on an annual and monthly basis, we note an acceleration in annual services CPI inflation to +3.2% Y/Y (vs +3.1% prior).
- A reminder that the January flash PMI signalled that wage pressures continue to drive inflationary pressures in the services sector.
- However, core inflation, which is not reported in the flash release, is likely to have continued decelerating in January, with non-energy industrial goods inflation estimated at +0.7% Y/Y (vs +1.4% prior).
- Base effects meant annual energy inflation fell to +1.8% Y/Y (vs +5.7% prior). We note that increases in the excise tax on natural gas in January will have likely pushed up the monthly NSA energy print.
- Tobacco prices rose +16.8% Y/Y, after tobacco duties were increased in January.
- Finally, both processed and unprocessed foods inflation moderated in January, with overall food CPI at +5.7% Y/Y (vs +7.2% prior).
- Rounding off this morning's data:
- HICP: 3.4% Y/Y (vs 3.6% cons, 4.1% prior); -0.2% M/M (vs -0.1% cons, 0.1% prior).
- CPI: 3.1% Y/Y (vs 3.3% cons, 3.7% prior); -0.2% M/M (vs 0.0% cons, 0.1% prior)
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