The Institute confirms this Friday, November 29, the stagnation of the consumer price index. Over one month, these prices fell slightly by 0.1% in November, compared to an increase of 0.3% the previous month.
As was the case for the month of October, inflation is still on the rise. “quasi-stability”a sign that the price surge is contained. Consumer prices thus increased by 1.3% in France in November over one year, according to a provisional estimate from INSEE on Thursday, after 1.2% in October. Still according to these provisional estimates, over one month, consumer prices fell slightly by 0.1% in November, compared to an increase of 0.3% the previous month.
Over one year, INSEE explains that the increase in consumer prices would be due to a “slowdown in food prices, offset by an acceleration in service prices”and a “less marked drop in energy prices”.
In November the drop in prices could this time be explained by the reduction in the prices of services, particularly transport, specifies INSEE. The prices of food and manufactured products, on the other hand, should be stable compared to October, but “those of energy and tobacco would be up slightly in November”we can still read.
“All the reasons combined for a reduction” in rates
The harmonized consumer price index (HICP), which allows comparisons between European countries, increased by 1.7% in November after 1.6% in October over one year. And would decrease by 0.1% in November after + 0.3% in October.
Thursday the governor of the Bank of France, François Villeroy de Galhau, estimated that “all the reasons” were “reunited” for one “reduction” interest rates at the next meeting of European Central Bank (ECB) governors on December 12. Inflation in France is now significantly below the target of 2% per year favored by the institution.
The ECB has eased its monetary policy recently, with three interest rate cuts since June. Most economists predict that the ECB will decide on further cuts at its next meetings, even reducing the deposit facility rate to 2%. Once returned to this level, Eurozone monetary policy would be considered neutral, meaning it would neither slow down nor stimulate economic activity.
France
