[B] French inflation soars in May rising to 2.3% over previous year
Updated Tues 6/12/2001 03:09 EDT
--French prelim May unadj CPI +0.7% m/m, +2.3% y/y --French prelim May adj CPI at +0.6% m/m, +2.3% y/y --French prelim May EU-harmonized CPI +0.7% m/m, +2.5% y/y --French prelim May CPI higher than market forecasts Paris, June 12 (BridgeNews) - French consumer prices rose 0.7% in May from April, as food and energy costs edged up, according to preliminary unadjusted data released by national statistics agency INSEE. (See table .6660) The May consumer price index rose 2.3% on year, continuing an upward trend and jumping above the key 2% mark identified by the European Central Bank as a worrisome inflation level. * * * In April, the CPI rose an unadjusted 0.5% on month and 1.8% on year. On an adjusted basis, consumer prices rose 0.6% in May and were up 2.3% on the year, following April's adjusted rise of 0.4% on month and up 1.9% on year. Measured on a so-called HICP index that harmonizes the calculation of inflation across the European Union, French prices were up 0.7% in May and up 2.5% on year. In April the HICP index rose 0.6% on month and 2.0% on year. LEADING THE WAY --After rising in April, energy prices continued to rise in May, jumping 3.1% from April and were up 3.7% on year. INSEE said this was due a "tradition" yearly hike of household gas prices. --Within this category, the cost of oil products rose 3.5%. --Food prices rose 1.7% from April and gained 6.1% from a year ago, following April's gains of 1.0% and 4.8% respectively. Prices for fresh products surged 9.1% in the month due to poor weather conditions and helped boost overall food costs. --Manufactured goods prices rose 0.2% on month and rose 0.9% on year, because of continued increases in the price of automobiles, INSEE said. --Prices in the services sector rose 0.1% on month and rose 1.3% on year, after jumping 0.4% on month and 1.3% on year in April. OFFSETTING FACTORS --Transport and communication costs fell 0.3% on month and fell 0.8% on year, due mainly to seasonal cuts in airfares and reduced prices on telephone services. --Tobacco prices remained stable. End |
