Consumer prices increased by 6% in France from February 2022 to January 2023, confirms INSEE, validating its first estimate. Inflation fueled by rising energy and food prices, which penalizes purchasing power. After reaching 5.9% over one year in December, the slight acceleration in January, specifies INSEE, is explained by the increase in the price of petroleum products, with the end of the generalized rebate at the pump, as well as that of gas prices, despite the 15% ceiling decided by the government for regulated tariffs.
Thus, in January, energy prices jumped 16.3%, while food prices soared 13.3%, weighing on household consumption. For food, the increases affect both fresh fruit and fish, bread, milk, cheese, eggs, meat, sugar and drinks. Conversely, the rise in the prices of manufactured goods and services slowed year on year, to 4.5% and 2.6% respectively.
Core inflation, which excludes the most volatile elements, such as energy and certain food products, and thus makes it possible to identify an underlying trend in price developments, rose to 5.6% on one year in January, after 5.3% in December. The Harmonized Index of Consumer Prices (HICP), used for Europe-wide comparisons, stood at 7% year on year in January.
In early February, INSEE estimated that consumer price inflation would remain on a “plateau” around 6% year on year in February, before gradually declining to 5% in June.
