12 March 2015

2015- n° 56

Consumer prices increased by 0.7% in February 2015; they decreased by 0.3% year-on-year Consumer price index - final results - February 2015

In February 2015, the Consumer Price index (CPI) grew by 0.7%, after a decrease by 1.0% in January. Year-on-year, consumer prices diminished again (—0.3% after —0.4% in January). In February 2015, the main contributors to the price rises were the seasonal increases in manufactured product prices at the end of winter sales and in tariffs of services linked with winter holidays. Some upward pressures came also from the rebound of petroleum product prices and a new increase in fresh foodstuff prices.

Prices of manufactured products bounced back after winter sales. Price recoveries were less pronounced than last year (+1.0% versus +1.3% in February 2014; —1.7% year-on-year) due to the effects of the introduction this year of an additional week of sales in February. It has contributed to limit the increase in prices of clothing and footwear (+4.5% versus +6.2% in 2014; —2.6% year-on-year) and, in a lesser manner, in prices of other products such as furniture and furnishings (+0.9% versus +1.9% in 2014; —0.9% year-on-year) or household textiles (+1.5% after +2.6% in 2014; —0.9% year-on-year). On the other hand, for some products, the price rises after the sale period were almost the same this year than last year. Thus, prices of domestic appliances grew by 0.7% in February 2015 (+0.6% in 2014; —2.3% year-on-year), those of appliances for personal care by 0.4% (+0.3% in 2014; —1.4% year-on-year) and those of personal effects by 1.5% (+1.6% in 2014; +0.2% year-on-year).

In February 2015, energy prices recovered, increasing by 2.1% month-on-month owing to petroleum products. However, they remained in decline year-on-year (—5.3%). After six consecutive months of fall, petroleum product prices increased by 4.7% in February (—12.1% year-on-year) in the wake of the rebound in oil prices. Prices of heat fuels rose by 7.8% (—17.3% year-on-year) and those of fuels for transport by 4.4% (—11.4% year-on-year). Moreover, town gas prices decreased (—1.2% after +1.6% in January ; +0.6% year-on-year) while electricity tariffs remained stable (+4.3% year-on-year).

Service prices increased by 0.4% in February 2015 (+1.3% year-on-year), as in February 2014. This rise came mainly from prices of services related to winter holidays: prices of holiday accommodation services rose strongly in February 2015 (+22.3%). Vacation rental tariffs (+1.3%; +4.4% year-on-year), airfares (+2.0% in February 2015; +0.9% year-on-year) and prices of package holidays (+1.9%; +1.8% year-on-year) increased also but in a lesser manner. Besides, after few months of relative stability, prices of communication services grew in February 2015 (+1.0%; —1.3% year-on-year). On the opposite, actual rentals for housing continued to slow (+0.7% year-on-year in February 2015, after +0.9% in January 2015). Furthermore, service charges for insurance declined slightly in February (—0.4%; +1.6% year-on-year) owing to promotions in vehicle insurance.

After a slight increase in January (+0.1%) food prices rose again in February 2015 (+0.2%; +0.1% year-on-year), as prices of fresh foodstuffs continued to rise (+1.3% after +0.9% in January 2015; +3.9% year-on-year). Mainly because of less favourable weather conditions than last year, prices of fresh vegetables were particularly dynamic (+9.1% year-on-year). However, prices of fresh fruits were just above those of last year in February (+0.3% year-on-year). Excluding fresh products, food prices were stable and declined by 0.5% year-on-year, as during the previous month.

Core inflation indicator (ISJ) rose by 0.2% in February 2015, after two consecutive months of stability. Year-on-year, it grew by 0.1%. The harmonized Index of Consumer Prices (HICP) increased by 0.7% in February but declined by 0.3% year-on-year (after —0.4% in January).