Inflation in France continues to slow down to 2.9% over one year in February, compared to 3.1% in January, according to INSEE

The drop in inflation is notably due to the slowdown in the prices of food, manufactured products and services.

The lull continues. Inflation slowed in France to 2.9% year-on-year in February, after 3.1% in January, and 3.7% in December, according to provisional data communicated by the National Institute of Statistics (Insee), Thursday February 29. But this announcement should be tempered since prices increased over the month. Between January and February, they increased by 0.8% after -0.2% in January. This rebound is due to the rise in prices of services, notably rents and transport, as well as those of energy, manufactured products and tobacco, according to INSEE. Food prices, on the other hand, fell slightly in January.

The drop in inflation over one year is due to “basic effects”, specifies INSEE, because prices had increased significantly over one month in February 2023. It is also due to the slowdown in the prices of food (+3.6% after +5.7% in January), manufactured products (+0.3% after +0.7%) and services (+3.1% after +3.2%). In food, the slowdown is spectacular for the prices of fresh products (+0.5% over one year after +7.9% in January and +15% in January 2023). On the other hand, the prices of energy (+4.4% over one year in February, after +1.9% in January) and tobacco (+18.7% over one year after +16.8%) are increasing. .

Over one year, the harmonized consumer price index (HICP), which is used for European comparisons, increased by 3.1% in February, after +3.4% in January, according to these provisional data. It rebounded by 0.9% over one month after -0.2% in January. In 2023, inflation in France had slowed to 4.9% on average after 5.2% in 2022.