Inflation in France increased slightly in May, reaching 2.3% year-on-year, according to INSEE. This increase is mainly explained by the acceleration of energy and food prices, while the prices of services slow down.
The harmonized consumer price index (HICP) stood at 2.6% over one year in May, compared to 2.4% the month before. This figure, used by the European Central Bank (ECB) to evaluate its monetary policy, is slightly lower than INSEE’s initial estimate.
Energy and food are pushing inflation up
Over one year, energy prices jumped 6.7%, compared to 6.1% the month before. This increase is due to the comparison with a lower price base in 2023, as explained by INSEE. The prices of petroleum products fell in May compared to April, but this drop is less significant than in 2023, hence the year-on-year increase.
On the food side, prices increased by 1.3%, after 1.2% the month before. This increase is mainly due to the prices of fresh products (+2.2%), while the prices of manufactured food products remain stable.
Slowdown in service prices
On the other hand, the prices of services slowed their progression, going from 3.0% to 2.8% over one year. This trend is notably due to transport prices (-0.2%), after a sharp increase in April. Prices for health services (+3.4%) and leisure (+3.3%) continue to increase at a sustained pace.
Harmonized inflation stable at 2.6%
The harmonized consumer price index (HICP), which serves as a reference for European comparisons, stood at 2.6% in May, after 2.4% the month before. This figure remains slightly lower than INSEE’s initial estimate.
Source : Lefigaro.fr
