31 January 2017

2017- n° 28

In January 2017, consumer prices increased by 1.4% year on year Consumer price index - provisional results - January 2017

Year on year, the Consumer Price Index (CPI) should accelerate sharply in January 2017 (+1.4% after +0.6% in December 2016), according to the provisional estimate made at the end of January. Inflation should thus reach its highest level since November 2012. This faster rise should come especially from the sharp acceleration in energy prices, linked on the one hand to the soaring prices of Brent crude and on the other hand to an increased taxation of petroleum products. Moreover, food prices and services prices should also rise more substantially. Finally, manufactured product prices are likely to decline less sharply than in the previous month.

Over one month, the CPI is set to drop by 0.2% in January 2017, after an increase of 0.3% in December. This fall should be due to the seasonal decline in manufactured product prices, essentially those of clothing and footwear. However, this decrease should be less strong than in January 2016, mainly because the winter sales began later this year. The overall drop over the month should be mitigated by the sharp acceleration in energy prices and, to a lesser extent, in food prices.

Year on year, the Harmonised Index of Consumer Prices should speed up sharply (+1.6% after +0.8% in December 2016). Over the month, it should decrease by 0.2% after a rise of 0.3% in the previous month.