Consumer price inflation continues to slow in France. In December, inflation stood at 0,8% year-on-year, compared to 0,9% in November, according to a provisional estimate published Tuesday by INSEE, the French National Institute of Statistics and Economic Studies. This figure confirms a trend toward a more moderate increase, but masks contrasting trends across different spending categories, from a sharp decline in energy prices to food prices that remain increasingly expensive for households. This slight decrease in annual inflation is primarily due to the more pronounced drop in energy prices. In December, these fell by 6,8% year-on-year, following a significant decrease of 4,6% in November. Petroleum products are the main driver of this decline, in a context of more moderate crude oil prices and less tension on international markets. This trend mechanically reduces household energy bills, although the effect remains uneven depending on heating and transportation methods. Meanwhile, other components of the index continue to contribute to rising prices. Service prices continue to rise at a steady pace, with an annual increase of 2,2%, identical to that observed in November. Tobacco prices, meanwhile, show a marked increase of 4,1% year-on-year, again with no significant change compared to the previous month.
Food prices continue to rise despite the general easing of tensions.
Contrary to the trend observed in energy prices, food prices are accelerating. In December, they rose by 1,7% year-on-year, following a 1,4% increase in November. This rise is driven primarily by fresh produce, which is sensitive to weather conditions and production costs. For consumers, this trend remains very noticeable in their daily lives, as food expenses represent a significant portion of household budgets. Manufactured goods, on the other hand, continue to contribute to moderating inflation. Their prices fell by 0,4% year-on-year, although the rate of decline is less pronounced than in November, when it reached 0,6%. This trend reflects both still-contained demand for certain goods and a gradual normalization of supply chains after the severe disruptions of previous years.
Over the course of a month, the consumer price index has risen slightly again.
After a 0,2% decline in November, prices rose by 0,1% in December. This monthly rebound is mainly due to seasonal effects on services, particularly transportation, as well as a slight increase in food prices. Conversely, energy and manufactured goods prices continued to fall over the period, while tobacco prices remained stable. The Harmonised Index of Consumer Prices (HICP), used to compare inflation between euro area countries, followed a similar trend. In December, it rose by 0,7% year-on-year, after 0,8% in November. Month-on-month, it also showed an increase of 0,1%, after a decline the previous month. These provisional figures will be confirmed or adjusted when the final results are published, expected on January 15. They nevertheless paint a picture of a calmer inflationary landscape than in 2024, without, however, signaling the end of pressures on purchasing power. The drop in energy prices provides some respite, but the persistent rise in food and services is a reminder that inflation, even moderate, continues to be a long-term trend.
