Inflation remains contained in France: consumer prices rose by 0,8% year-on-year in March, the same rate as in February, according to a provisional estimate published this Friday by INSEE. While energy prices continue to fall sharply (-6,2%), the rise in food prices (+0,6%, including +3,8% for fresh produce) and services (+2,3%, particularly insurance) explains the overall stability of the index. Over one month, the price increase reached +0,2%.
Food up, energy down
After two years of soaring prices, electricity prices fell by an average of 15% in February for more than 24 million households. This was the first time in ten years and contributed significantly to the decline in inflation. Conversely, food prices are experiencing a slight recovery, linked to rising production costs in the agri-food sector. INSEE also highlights a decline in manufactured goods prices (-0,2% year-on-year), despite a slight monthly increase driven by clothing and footwear.
A lasting trend?
According to the Banque de France, inflation is expected to remain moderate over the next two years, with a projection of 1,3% for 2025. The Harmonized Index of Consumer Prices (HICP), used for European comparisons, is also stable at +0,9% year-on-year. The inflation peak now appears to be behind us, although certain product categories, such as food, remain under surveillance.
