PARIS (Reuters) – Inflation over one year accelerated slightly in December in France, due to the increase in the prices of energy and services, according to preliminary data published on Thursday by INSEE.
The consumer price index (CPI) stood at 3.7% in a first estimate over the twelve months to the end of December after an increase of 3.5% in November.
Analysts polled by Reuters expected an acceleration to 3.8%.
Over one month, consumer prices increased by 0.1% after a decline of 0.2% in November.
Energy prices increased by 5.6% in December, after +3.1% the previous month, and those of services by 3.1% compared to +2.8% in November.
“World oil prices are at a level comparable to those of last year, but since then the price of electricity has increased and the rebate at the pump has been eliminated,” notes Sylvain Bersinger, economist at the Asterès firm.
“The increase in inflation in services is more worrying”, he judges because it could “indicate that wage increases are starting to be significantly reflected in prices”.
The consumer price index harmonized according to European HICP standards, which allows comparisons with other countries in the euro zone, stood at 4.1% over one year at the end of December, in accordance with the consensus and after + 3.9% at the end of November.
Over one month, the HICP index increased by 0.1% after a decline of 0.2% the previous month, according to INSEE.
Data on inflation in Germany is also expected on Thursday before data expected on Friday for the entire euro zone.
(Written by Blandine Hénault, edited by Kate Entringer)
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