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French December consumer price inflation remained steady at a seasonally adjusted 0.3 percent, from previous 0.3 percent in November. Markets had also expected CPI to rise 0.3 percent last month.
French National Institute for Statistics and Economic Studies in its press release mentioned that the CPI seasonally adjusted increased slightly +0.1 percent, as in the previous month. On an annual basis, the CPI accelerated for the second consecutive month (+0.6 percent after +0.4 percent in October and +0.5 percent in November) and have reached its highest increase since May 2014.
The month-on-month increase came from an essentially seasonal rebound in services prices. Energy prices and food prices rose at the same pace as in November. Manufactured product prices were stable after a slight drop in November.
In December 2016, the core inflation indicator (ISJ) edged down to −0.1 percent after +0.1 percent in the previous month. Year on year, it dropped to 0.4 percent, after +0.5 percent in the two previous months. The Harmonised Index of Consumer Prices (HICP) increased by 0.3 percent over one month, after stability in November. Year on year, it accelerated to +0.8 percent, its highest change since May 2014.
