Inflation slows in December and reaches 5.9% over one year

by time news

The rise in consumer prices in France slowed in December to 5.9% over one year, against 6.2% in November, according to the provisional estimate published by INSEE on Wednesday 4 January.

However, this decline could only be temporary, as the National Institute of Statistics warned last month that inflation should peak at 7% in early 2023, before falling more durably from March.

Slowdown in energy prices

INSEE notes that “this drop in inflation would be due to the slowdown in energy prices and, to a lesser extent, services”. Food prices should increase over one year at the same rate as in November, and those of manufactured products should accelerate.

Energy prices have indeed increased by 15.1% since December 2021, compared to 18.4% for November figures. The prices of fresh produce have soared by 9.3% since December 2021, after the 12.7% increase recorded in October. The cost of services increased by 2.9% over one year (3% in November).

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