Rising prices: Inflation slows to +2.9% year-on-year in February, according to INSEE

Inflation slowed in France +2.9% YoY in February, After +3.1% in January, According to provisional data communicated by the National Institute of Statistics (Insee) this Thursday. However, there has been a significant increase in the month. Between January and February, prices rose 0.8% after -0.2% in January. Due to the rebound Increase in price of servicesEspecially rent and transportation, as well that of energy, Manufactured products and tobacco, according to INSEE. Food prices, however, fell slightly during the month.

INSEE does not detail monthly changes in this provisional estimate. A drop in inflation over a year despite a sharp rise in prices in one month, esp “Basic Effects”INSEE mentions, because in February 2023 there was a significant increase in prices for more than a month.

Food and rent are rising more slowly, energy is rising faster

The year-on-year decrease in February is due to a slowdown in food prices (+3.6% after +5.7% in January), manufactured goods (+0.7% after +0.3%), services (+3.2 after +3.1%). %). In food, the slowdown is spectacular for fresh produce prices (+7.9% in January and +15% in January 2023 followed by +0.5% a year later).

On the other hand, energy prices (+4.4% in one year in February, after +1.9% in January) and tobacco (+16.8% in one year after +18.7%) are rising.

On a year-on-year basis, the harmonized index of consumer prices (HICP), which is used for European comparisons, rose 3.1% in February, after +3.4% in January, according to this provisional data. It recovered by 0.9% in one month after -0.2% in January. In 2023, inflation in France averaged 4.9% after 5.2% in 2022.