Free Trial

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

FRANCE DATA

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.

162 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

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.