Source:INSEE

13 JANUARY 2012

CONSUMER PRICES in Metropole recorded a third consecutive increase in December month-on-month and edged up +0.3% taking yearly inflation to +1.8% (+1.6% in October). Including the French Overseas Departments (DOM) consumer prices rose +2.5% on the same period.

In December, manufactured products prices grew a steep +0.5% due to clothing and shoes +0.7% and other manufactured products +0.5% price increase. The services price index grew at similar pace as the rent index rose +0.7% in addition air fares +3.4% price hike. Energy prices fell -0.1% due to the oil prices index equal decline.

Food prices by contrast inched down +0.3% despite fresh products prices +0.9% price index hike offset however by fruit prices -0.3% cut. Excluding fresh products the food index stayed nearly unchanged or +0.2% thanks to tea-cocoa modest +0.3% rise and oil and fats -0.1% decline.

In one year, energy products prices spiked +9.3% due to oil products prices +11.7% hike. Liquid combustible prices shot up +17.4%. Retail petrol prices averaged €1.50/liter annually and retail gas oil €1.30/liter. Tobacco prices ranked second among the index inflationary components and mechanically rose +5.6% due to the previous month +2.8% increase. Food prices climbed +3.3% on the same period  despite fresh products -1.7% price cut (among which vegetables -4.2%). Excluding fresh products however, food prices jumped +4% due to tea-cocoa +12.8%, oil and fats +7.9%.  Dairy, meat and seafood products averaged each +4% rise on the same period.

Manufactured product prices increased +1% pushed up by clothing and shoes +3% rise, and other manufactured products +1.1%. The health products price index fell - 1.3%. The services prices index grew +1.8% with rent-water and garbage removal aligned to yearly inflation, while the other services price index grew +2.4% due to accommodation services steep +4.2% price spike. The index biggest price cut was recorded by the leisure and culture sub-component thanks to IT-optical and photo equipment, on average -12% price cuts unlike any other goods, services or product.