Inflation up slightly by 1.4% year-on-year in January: how to explain this increase in France ?

Consumer prices rose by 1.4% year-on-year in January, according to provisional data released by INSEE on Friday, after a 1.3% rise in December, with the increase coming in particular from a new acceleration in energy prices.

Consumer prices increased by 1.4% over one year in January, according to provisional data published Friday by INSEE, after a rise of 1.3% in December, and relayed by BFMTV.

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This increase is explained in particular by “a new acceleration in energy prices”, specifies the Institute.

INSEE also attributes this increase to “a rebound in the prices of manufactured goods”. However, prices fell 0.1% over the month, after rising 0.2% in December.

Economists polled by Reuters had forecast annual inflation of 1.5% in January, compared with 1.3% in December.

Food more stable

“The rebound in manufactured goods prices and the renewed acceleration in energy prices would be partly offset by the slowdown in services and tobacco prices. Food prices would be almost stable over the an”, indicates the INSEE in its press release.

The harmonized consumer price index (HICP), which allows inflation to be compared between European countries, rose by 1.8% over one year in January, a level identical to that of December. Over one month, it fell by 0.2%, after an increase of 0.2% the previous month.

According to the INSEE, this slight monthly decline is explained by “the seasonal decline in the prices of manufactured products, due to the winter sales on clothing and footwear, and by the decline in the prices of services, particularly transport, despite a new increase in insurance prices”. On the other hand, “the prices of energy, food and tobacco would be on the rise”.