Consumer prices in France rose 1.7% in March, compared to the same month a year ago

Consumer prices were 1.7% higher on an annual basis in France in March, while the month-on-month increase stood at 1.0%, new data from Insee, the French statistics body, has found.

This follows on from a 0.6% increase in February, and reflects a notable increase in energy prices, driven by the conflict in the Middle East.

Energy prices increased by 8.9% on a month-on-month basis after a smaller rise the previous month. Petroleum products were the main factor, rising by 17.1%.

Prices for manufactured products increased by 0.7%, while services rose by 0.2%. Tobacco prices increased by 0.3%, and food prices rose by 0.1%. Adjusted for seasonal effects, consumer prices increased by 0.8% over the month.

Annual increase

On an annual basis, inflation accelerated compared with February. This increase was mainly linked to energy prices, which rose by 7.4% year on year after declining in the previous month. Petroleum product prices increased by 18.1%, including diesel, petrol and liquid fuels. Electricity (‑3.1% compared to ‑3.6%) and gas prices (‑2.2% compared to ‑3.3%) continued to decline over the year, though at a slower pace than before.

Core inflation, which excludes certain volatile components, reached 1.1% year on year in March, up from 0.9% in February. The Harmonised Index of Consumer Prices rose by 1.1% over the month and by 2.0% over the year.

Services prices increased by 1.7% year on year, showing a slight acceleration. Transport prices rose by 2.4%, supported by increases in airfares and road transport. Communication services also increased, while health services showed a small rise. Prices for rents, water and waste collection continued to grow at the same rate as in the previous month.

Food price inflation

Food price inflation slowed to 1.8% year on year, down from 2.0% in February. Prices for several categories, including non-alcoholic beverages (+7.8% compared to +9.0%) and milk, other dairy products and eggs (+1.1% compared to +1.3%) increased at a slower pace. Fresh food prices also slowed (+1.8% compared to +2.0%), although some items such as fresh fish (+6.8% compared to +4.8%) recorded higher increases.

Manufactured products prices declined by 0.5% year on year, with larger decreases in health products and household goods. Prices for clothing and footwear rose at a slower rate than in the previous month.

In the large-scale retail sector, prices for industrial food, cleaning products and personal care items increased by 1.2% year on year, slightly higher than in February. Read more here.