In November, consumer prices in France showed contrasting trends, between a drop in energy and an increase in services.
INSEE confirmed inflation of 1.3% in November 2024 over one year, a slight increase compared to 1.2% in October. Although this overall stability may seem reassuring, it arises from disparate developments. Some sectors such as energy continue to see their prices fall, while others, notably services and tobacco, record marked increases.
Price trends: energy, food and services
Energy prices fell 0.7% year-on-year in November, compared to a drop of 2% in October, reports Le Figaro. This reduction, although less significant than the previous month, helped to contain overall inflation. The declines notably concern the prices of gas and electricity, while fuels show relative stabilization.
Food, for its part, recorded a significant slowdown in price increases. In November, this increase was limited to +0.2%, compared to +0.6% in October. Fresh products, particularly sensitive to seasonal variations, are the main contributors to this slowdown. Conversely, processed foods continue to increase, although more moderately.
On the other hand, services continue to rise, with an increase of 2.3% over one year. This trend notably reflects higher costs in air travel, leisure and other activities, sometimes influenced by wage increases or tariff adjustments in certain sectors.
Impact of monetary policies and other key sectors
Prices of manufactured products also recorded a slight decline, of -0.3% in November compared to -0.2% in October, according to SudOuest. The decline is partly due to weaker demand and price adjustments in sectors such as clothing and electronic equipment.
Tobacco, on the other hand, continues to show strong inflation, reaching +8.7% over one year. This increase is linked to reinforced tax policies to discourage consumption, a lever often used by governments for public health reasons.
Finally, on the macroeconomic level, the European Central Bank lowered its key rates by 0.25 points, a decision which takes place in a context of controlled inflation within the euro zone. This adjustment also aims to support a downwardly revised growth forecast and to signal a gradual easing of the restrictive monetary policy adopted in recent years.
