CPI A Touch Above Expected, HICP In Line, Services Disinflation Limited

French annual CPI was a touch above consensus in February at 2.9% Y/Y (vs 2.8% cons, 3.1% prior).

• On an NSA monthly basis, prices rose 0.8% M/M (again 0.1pp above consensus, vs -0.2% prior).
• HICP was in-line with consensus on an annual basis (3.1% Y/Y vs 3.4% prior) and 0.1pp above on the month (0.9% M/M vs -0.2% prior)
• Services CPI inflation decelerated just 0.1pp to 3.1% Y/Y – markets and the ECB may have been anticipating/hoping for a more marked fall. The press release notes that increased rents and transport drove up services prices on a monthly basis.
• Non-energy industrial goods CPI continued decelerating, to 0.3% Y/Y (from 0.7% prior).
• Of the non-core categories, energy rose on the month and year as expected following the change in regulated energy prices in France (annual energy CPI was 4.4% vs 1.9% prior).
• Food inflation saw a large fall to 3.6% Y/Y (vs 5.7% prior), driven largely by unprocessed foods.