French inflation decelerates sequentially in April on sharp slowdown in energy, manufactured production

French headline inflation decelerated sequentially in April. The consumer price index rose 0.3 percent, a slowdown from 0.8 percent rise seen in the prior month. The deceleration was mainly driven by sharp slowdown in manufactured production, energy and tobacco.

On the other hand, services prices accelerated, while food prices recovered very slightly.

On a year-on-year basis, inflation accelerated slightly to 1.3 percent, as compared with 1.1 percent seen in March. The rise was driven by acceleration in services prices and, to a lesser extent, a little less marked drop in those of manufactured product. On the contrary, energy prices decelerated, whereas food and tobacco prices rose at the same rate as in March on a year-on-year basis.

Meanwhile, core inflation accelerated to 0.7 percent year-on-year from March’s 0.5 percent. The Harmonized Index of Consumer Prices decelerated to 0.4 percent sequentially, whereas it accelerated to 1.5 percent on a year-on-year basis.

Services prices were more dynamic in April, rising 1 percent year-on-year. Transport prices recovered to 0.5 percent year-on-year. Meanwhile, prices for “other services” gathered pace anew and those of communication services dropped less than in March. Housing-related services price fell less than in March.

The decline in manufactured produce prices was slightly mitigated in April on a year-on-year basis. This fall came from a lesser decline in the prices of clothing and footwear and health products. The prices of “other manufactured products” barely fell.

Energy inflation eased in April after rising for two months. On a year-on-year basis, energy inflation slowed to 4.8 percent from March’s 5.1 percent. The petroleum products prices eased to 5.7 percent year-on-year, owing to ales pronounced monthly rise than the previous year. Those of gas also slowed on a year-on-year basis.

Meanwhile, food prices rose 2.5 percent year-on-year in April. Those in fresh products were less dynamic than in the previous month, owing to a deceleration in the prices of fresh fruits, fresh vegetables and fresh fish. Stripping fresh products, food prices barely accelerated.

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