Source:Insee

18 MARCH 2011

CONSUMER PRICES stayed nearly unchanged or +0.1% in February in Metropole and moved down to +0.4% in one year while including the French Overseas Departments, (DOM TOM) prices rose +0.5% and +1.7%.

In February and month-on-month, food prices grew+0.3% due to fresh products 
+1.3% price rebound. Energy prices +1.1% steep increase reflected oil products +1.8% price rise. Services +0.7% price gain was inflated by transport and communication +1.6% price hike as each component price indices climbed respectively +0.8% and +1.8%. Manufactured products prices stayed flat thanks to footwear and clothing, a -2% price cut thanks to prolonged winter sales. Health products prices fell -0.3%.

In the Euro area, inflation was 2.4% (provisional) and excluding energy 1.3%. Iceland's inflation rate landed to 2.3% against the previous year 10.7% according to Eurostat figures. In the Euro area, recreation and culture services +0.9% price gain mirrored France's own +0.8% as winter vacations pushed up prices. Food, hotels, restaurants, housing and transports +0.5% price gains were widely surpassed by France's +8.6% for accommodation services alone. Package holidays prices followed a similar patters: France's price jumped +10.8% while the Euro area's averaged +4.8% but still counted one of the largest upwards impact on the overall index. The highest inflation rates were recorded by Greece at 4.2%, Estonia's 5.5% a recent Euro area member state, Luxembourg 3.9% and Finland and Slovakia each 3.5%. Sweden's 1.2% yearly inflation rate recorded the Union's lowest.

In one year, energy prices in France jumped +15% with oil prices leaping +19.1% Services +1.6% price rise ranked second among the index highest increases while food products +0.3% and manufactured products -0.9% offset stronger inflationary pressures. Among the index sub components however, fresh fruit prices leaped +4.8%, fish and seafood +2.2%. Electricity, gas and other combustibles prices soared +12.3% swollen by electricity +6.4%, gas+14.6% despite stable gas prices worldwide and overcapacities. Liquid combustible prices soared +29.4%. Winter holidays inflated combined passenger fares +3.5% and train fares +2.4% while airfares bargains allowed for -3.9% price cuts.

In the Euro area and on the same period, fuels prices for transport in  jumped to +16.1% (provisional), heating oil +30.5%, electricity +6.8% and gas +8.9%