2024-01-04 18:59:27
Inflation in France jumped slightly to 3.7% year-on-year in December, after 3.5% in November, due to the “acceleration” of energy and service prices, according to provisional data published Thursday by the National Institute of Statistics. Energy prices increased by 5.6% year-on-year in December (compared to 3.1% in November) and those of services by 3.1% (after 2.8%). While they represent less than a tenth of the household consumption basket, they would nevertheless fall over one month, unlike those of services (around half of the basket).
Food prices, which had been the main driver of inflation in 2023 with a peak of almost 16% in the spring, on the other hand continued to slow down, with an increase of 7.1% year-on-year in December ( compared to 7.7% in November).
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But the prices of fresh products followed the opposite trend, increasing by 8.8% in December, after 6.6% in November. Prices of manufactured products slowed down, to +1.4% in December year-on-year, after +1.9%.
The harmonized consumer price index, allowing European comparisons, also increased in December, to 4.1% year-on-year, compared to 3.9% in November.
Diesel at 1.75 euros per liter
According to official data published on January 3 by the government, 2023 ended with a liter of SP95-E10 offered at 1.78 euros and 1.75 euros for diesel. Prices, which directly depend on oil prices, have nevertheless not reached the peaks of 2022, where the two euro mark has been crossed several times.
The government announced the end of the fuel check three weeks ago. As for the fuel allowance of one hundred euros, which in 2023 concerned the ten million lowest-income tax households, Bruno Le Maire, the Minister of the Economy, indicated that it would be directly conditioned on prices.
The crisis is “behind us” according to Le Maire
In December, the Minister of Economy and Finance, Bruno Le Maire, estimated that the inflationary crisis caused by the repercussions of Covid and then the war in Ukraine was “behind us” in France, but that the level of inflation would remain “a little higher” than before the crisis, notably due to the energy transition.
In its latest forecasts published in mid-December, INSEE expects inflation to be 4.9% on average annually in 2023 (after 5.2% in 2022), and 2.6% over one year next June. .
The Banque de France predicted that inflation would reach 5.7% on annual average in 2023 and fall to 2.5% in 2024, measured here according to the harmonized consumer price index (HICP).
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