FX.co ★ French Annual Inflation Eases to 1% in December

(RTTNews) - French consumer price annual inflation slowed to 1% in December from 1.6% recorded in November, the statistical office INSEE said Wednesday. Economists had expected the rate of inflation to slow to 1.1%.

On a monthly basis, the consumer price index fell 0.2% in December after rising 0.4% in the same month of the previous year. The consensus forecast was for a 0.3% decline.

The core monthly inflation was 0.1%, while annual inflation stood at 1.8%.

The statistical office said the new decline in the consumer price index was especially the consequence of the fall in prices of energy. In addition, prices of fresh products declined. At the same time, charges of services increased, partly because of seasonal factors. Prices of clothing and footwear and of foodstuffs except fresh products also increased. Prices of other manufactures were stable.

The price index adjusted for seasonal variations fell 0.3% month-on-month in December following a 0.4% drop recorded in November.

The harmonized index of consumer prices or HICP fell 0.3% on a monthly basis, while rose 1.2% year-on-year. Monthly fall matched economists' expectations. Economists foresaw the annual HICP inflation rate to fall to 1.3%.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RealTimeTraders.com, Inc. All Rights Reserved