French consumer inflation accelerated to a five-month high in January largely on energy and manufactured product prices, but harmonized inflation remained stable below the European Central Bank’s 2% target, provisional data showed.
Figures released from the statistical office INSEE on Friday showed consumer prices registered an annual increase of 1.4% in January, following December’s 1.3% rise. The 1.4% was the highest since last August, when prices grew 1.8%.
Nonetheless, inflation stayed slightly below economists‘ forecast of 1.5%. The rebound in prices of manufactured product and a further acceleration in those of energy were partly offset by the slowdown in prices of service and tobacco, the statistical office said.
Month-on-month, consumer prices dropped 0.1%, in contrast to the 0.2% increase in the previous month and the forecast of no change.
EU harmonized inflation was 1.8% in January, the same as in December. Month-on-month, the harmonized index of consumer prices dropped 0.2%, offsetting a 0.2% rise in the previous month. Economists had forecast the HICP to climb 1.9% annually and to remain flat on a monthly basis.
Final January inflation results are due on February 18.
Another report from INSEE showed that producer prices declined for the 13th straight month in December.
Producer prices slid 3.8% year-on-year after a 4.7% fall in November. They were around 26% above their 2021 average level. On a monthly basis, producer prices increased 1.0%, which was much weaker than the 3.7% increase in November.
ING economist Charlotte de Montpellier said overall inflation in France is likely to remain close to the current level on average over 2025, before returning to close to 2% in 2026.