French Inflation Accelerated in January on Higher Food, Energy Prices

By Xavier Fontdegloria

French inflation edged again up in January, remaining near multidecade excessive ranges, because of the acceleration in meals and power costs as the federal government ended gasoline subsidies and elevated the value cap on pure gasoline.

The shopper value index elevated 6.0% in January in contrast with a yr earlier, up from the 5.9% enhance recorded in December, preliminary information from the nation’s statistics workplace Insee confirmed Tuesday.
The rise in inflation comes after two consecutive months of declines. Still, economists polled by The Wall Street Journal anticipated inflation to return in a little bit greater at 6.1%.
Energy costs elevated 16.3% on yr in January, up from the 15.1% annual enhance recorded in December, Insee stated. Similarly, meals inflation accelerated to 13.2% from 12.1%. Manufactured items inflation remained unchanged at 4.6%, whereas providers inflation slowed to 2.6% from 2.9%.
Consumer costs rose 7% on yr by European Union harmonized requirements, accelerating from the 6.7% annual enhance seen a month earlier.
French inflation is predicted to peak within the first half of 2023 and to fall sharply afterward, closing the yr at round 4%, in accordance with the most recent macroeconomic projections from the Bank of France launched in December.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com