French headline inflation slows down in May, show preliminary data

French preliminary data for May consumer prices was released today. The flash data showed that the headline inflation decelerated to 1 percent on a year-on-year basis from April’s 1.3 percent. This fall in inflation might be due to a slowdown in prices of services, energy and food and from a little more marked drop in manufactured goods. Services inflation slowed down to 0.7 percent, while food and energy prices eased to 2.3 percent and 3.4 percent, respectively. On the other hand tobacco prices accelerated to 9.1 percent from 8.1 percent.

On a sequential basis, consumer prices eased to 0.2 percent in May from April’s 0.3 percent. Services prices slowed down in the wake of those in transport, while energy prices also decelerated. Meanwhile, food prices were more dynamic on a sequential basis in April, owing to a recovery in fresh product prices. The prices of manufactured goods and tobacco rose somewhat in May as compared to April.

The Harmonised Index of Consumer Prices eased sharply to 1.1 percent on a year-on-year basis from 1.5 percent in April, whereas it slowed down to 0.2 percent sequentially from 0.4 percent in the prior month.

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