In December 2016, consumer prices increased by 0.3% over a month and by 0.6% year on yearConsumer price index - final results - December 2016

In December 2016, the Consumer Prices Index (CPI) rose by 0.3% over a month after a stability in the two previous months. Seasonally adjusted, it increased slightly (+0.1%), as in the previous month. Year on year, the CPI accelerated for the second consecutive month (+0.6% after +0.4% in October and +0.5% in November) and have reached its highest increase since May 2014.

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Informations rapides – No 7
Paru le : 01/12/2017
Prochaine parution le : 04/13/2017 at 08:45 - March 2017

Monthly change: +0,3%; Year-on-year change: +0.6%

In December 2016, the Consumer Prices Index (CPI) rose by 0.3% over a month after a stability in the two previous months. Seasonally adjusted, it increased slightly (+0.1%), as in the previous month. Year on year, the CPI accelerated for the second consecutive month (+0.6% after +0.4% in October and +0.5% in November) and have reached its highest increase since May 2014.

The month-on-month increase came from an essentially seasonal rebound in services prices. Energy prices and food prices rose at the same pace as in November. Manufactured product prices were stable after a slight drop in November.

Rebound in services prices

In December 2016, services prices picked up (+0.4% after −0.2% in November). Year on year, they slowed slightly (+0.9% after +1.0%). The month-on-month increase was mostly driven by the seasonal upturn in airfares, more pronounced than in the previous year (+17.3% after −7.5% in November). Year on year, these prices rose for the first time since July 2015 (+1.1% after −2,9% in November). The prices of accomodation services rebounded too (+2.7% after −2.0% in the previous month; +1.8% year on year). Health services prices were stable (−0.2% year on year). By contrast, the prices of communication services kept dropping (−0.6% after −0.3% in the previous month); year on year, they slowed down (+2.3% after +2.9% in November).

Table1 – Detailed figures for various groups

2015: 100
Detailed figures for various groups
Items Weight Index Percentage change
2016 Dec. 2016 m-on-m change y-on-y change
a) All households
Overall 10000 100.65 0.3 0.6
Overall SA* 10000 100.66 0.1 0.6
Food 1615 100.75 0.1 0.7
Fresh food 217 104.69 0.9 5.6
Other food 1398 100.12 0.0 0.0
Tobacco 195 100.17 0.0 0.1
Manufactured products 2651 99.86 0.0 −1.0
Clothing and footwear 414 105.26 0.6 −0.1
Medical products 466 95.99 −0.1 −2.4
Other manufactured products 1771 99.55 −0.1 −0.8
Energy 773 100.30 0.9 4.3
Petroleum products 419 99.69 1.0 7.5
Services 4766 101.16 0.4 0.9
Actual rentals and services for dwellings 768 100.89 0.2 0.4
Health services 598 100.21 0.0 −0.2
Transport 279 100.86 5.1 1.0
Communication 245 102.39 −0.6 2.3
Other services 2876 101.35 0.3 1.1
Total except rents and tobacco 9183 100.68 0.3 0.6
Total except tobacco 9805 100.66 0.3 0.6
b) Urban working-class households or households of employees
All products excluding tobacco 9704 100.61 0.2 0.6
c) Households that belong to the lowest equivalized disposable income quintile - France
All products excluding tobacco 9696 100.57 0.3 0.6
  • *: seasonally adjusted
  • Geographical coverage: France excluding Mayotte
  • Source: INSEE - Consumer Price Indices

Further increase in energy prices

In December 2016, energy prices rose by 0.9%, as in the previous month. Year on year, they accelerated strongly further (+4.3% after +2.1% the previous month). It has been the highest year-on-year increase since October 2014.

Over the month, a slowdown in petroleum product prices (+1.0% after +1.3% in November; +7.5% year on year) was offset by an acceleration in town gas and natural gas prices, index-linked to oil prices with a time lag (+2.4% after +1.5% in November; −2.2% year on year). Electricity fares have been unchanged since September 2016 (+1.8% year on year).

Slight rise in food prices

In December 2016, food prices went up slightly (+0.1%, as in November). Fresh food prices strengthened sharply (+0.9% after +0.1%). Those of other food products were stable, after a slight increase in the previous month (+0.2%). Year on year, food prices remained stable.

Stability in manufactured product prices

In December 2016, the prices of manufactured products were unchanged after a little decrease in November (−0.1%). Year on year, the drop was more pronounced (−1.0% after −0.6% in November). Over the month, clothing and footwear prices sped up (+0.6% after +0.1%; −0.1% year on year). Those of “other manufactured products” edged down (−0.1%, as in the two previous months): the prices of newpapers (−1.0%) and furniture and furnishings (−0.1%) fell back while those of new motor cars rebounded slightly (+0.1%). Lastly, the prices of health products declined again, but less than in the previous month (−0.1% after −0.2%; −2.4% year-on-year).

Slight drop in core inflation year-on-year

In December 2016, the core inflation indicator (ISJ) edged down to −0.1% after +0.1 % in the previous month. Year on year, it dropped to 0.4%, after +0.5% in the two previous months. The Harmonised Index of Consumer Prices (HICP) increased by 0.3% over one month, after a stability in November. Year on year, it accelerated to +0.8%, its highest change since May 2014.

Graph1 – Consumer Price Index (CPI), core inflation (ISJ)* and Harmonised Index of Consumer Prices (HICP)** year-on-year changes

Table2 – Detailed figures for Core inflation* and HICP**

2015: 100
Detailed figures for Core inflation* and HICP**
Items Weight Index Percentage change
2016 Dec. 2016 m-on-m change y-on-y change
Core inflation - All items 6075 100.64 −0.1 0.4
Food excluding fresh products, meat, milk and exotic products 735 100.12 0.1 0.2
Manufactured products 2136 99.57 −0.3 −0.6
Services including actual rentals and services for dwellings 3204 101.50 0.0 1.1
HICP - All items 100.90 0.3 0.8
  • * Core inflation indicator excludes public sector prices, the most volatile consumer prices and the tax measures. Seasonally adjusted, this index is calculated for all households in France excluding overseas departments and territories. (in French “indice d'inflation sous-jacent - ISJ”)
  • **HICP: Harmonised Indices of Consumer Prices are inflation figures designed for international comparison between Member states of the European Union. This index is calculated for all households in France excluding Mayotte.
  • Source: INSEE - Consumer Price Indices

Revisions

Compared to the provisional estimates published on 3 January 2017, the monthly and annual variations in the CPI and HICP in December 2016 are unchanged.