Energy price surge lifts French CPI by 0.2% in January

In January 2025, the French Consumer Price Index (CPI) increased by 0.2 per cent over one month, maintaining the same pace as in December, according to estimates by the National Institute of Statistics and Economic Studies (INSEE).

This rise in prices was primarily driven by higher energy costs, which rose by 1.6 per cent, following a 0.7 per cent increase in December. The price of petroleum products climbed by 2.8 per cent (after +1.0 per cent in December), while gas prices rose by 2.5 per cent.

The cost of manufactured products declined over the month, falling by 1.1 per cent after a previous drop of 0.5 per cent, largely influenced by winter sales.

When adjusted for seasonal variations, consumer prices showed a stronger monthly increase of 0.5 per cent in January, compared to 0.2 per cent in December.

Consumer prices climbed by 1.7 per cent YoY in January 2025, marking an increase from the 1.3 per cent recorded in December. This rise in inflation was attributed to a sharper year-on-year (YoY) increase in energy prices, which accelerated to 2.7 per cent from 1.2 per cent in December. Additionally, manufactured goods saw a rebound in prices, registering a 0.2 per cent increase after a 0.4 per cent decline in December.

Core inflation also exhibited a slight upward trend, reaching 1.4 per cent in January 2025, up from 1.3 per cent in December.

The Harmonised Index of Consumer Prices (HICP) recorded a monthly decrease of 0.2 per cent in January, following a 0.2 per cent increase in December. On a YoY basis, however, the HICP remained stable at 1.8 per cent, matching December’s figure.

The price of manufactured products saw a YoY increase of 0.2 per cent in January, reversing a 0.4 per cent decline in December. Clothing and footwear prices particularly contributed to this trend, rising by 1.7 per cent after a marginal increase of 0.4 per cent in December.

Energy prices, meanwhile, surged 2.7 per cent YoY in January 2025, significantly outpacing December’s 1.2 per cent increase. This acceleration was largely driven by a smaller decline in petroleum product prices, which fell by 1.3 per cent in January after a steeper 4.8 per cent drop in December.

Similarly, diesel prices saw a more moderate decline of 2.0 per cent compared to a 6.3 per cent drop in December, while petrol prices edged down by just 0.3 per cent after falling by 2.9 per cent in the previous month.

Conversely, electricity and gas prices showed signs of slowing. Over the year, electricity prices increased by 9.3 per cent, a deceleration from the 9.8 per cent rise in December. Gas prices followed a similar trend, increasing by 3.7 per cent YoY, down from a 5.3 per cent rise in December.

Fibre2Fashion News Desk (HU)