FX.co ★ Coronavirus crisis curtails consumer spending and slows inflation in France

The COVID-19 pandemic has had an enormous negative impact on the global economy. Analysts estimate that Europe is the worst-hit region, the Italian and French economies in particular.

Last month, the annual inflation rate in France measured by the consumer price index (CPI) edged up by 0.4%. According to the National Statistics Office Insee, in March 2020, consumer prices increased by 0,7%. Experts at Insee pointed to a sharp slowdown in the country's inflation amid lower energy prices.

During the reporting period, food prices in France rose by 3.7% year-on-year. At the same time, energy prices and prices for manufactured goods went down by 8.5% and 0.4%, respectively. The service sector also saw an increase in costs by 0.7%.

In addition, Insee reported that in April, French consumer prices measured by EU-harmonized standards grew by 0.5%. The result fell short of expectations for a 0.2% gain. The National Statistics Office noted that in March 2020, household consumption expenditure on goods in France tumbled 17.9% from February. This is the strongest decrease ever recorded since the beginning of the time series, experts emphasize.

In March this year, French food consumption increased by 7.8%, surpassing the figure for February, while energy costs dropped by 11.4%. Spending on durable goods sank the most - by 48.8%, the agency noted.