Informations Rapides · 15 January 2021 · n° 011

Consumer prices slowed down on average from 2019 to 2020 Price Index – Annual average rates of change - year 2020

On average over the year, consumer prices slowed down in 2020 for the second consecutive year. The inflation was up by 0.5% after +1.1% in 2019 and +1.8% in 2018. Excluded tobacco, consumer prices were also less dynamic than in 2019: +0.2% in 2020 after +0.9% in 2019. The drop in inflation resulted, on the one hand, from a downturn in the prices of energy and on the other hand, from a slowdown in the prices of services and those of foods. Contrariwise, the lesser decline in the prices of manufactured goods and the acceleration in the prices of tobacco moderated the global decrease. Core inflation was slightly weaker, +0.6%, after +0.8% in 2019.

In 2020, the energy prices fell back strongly (−6.1% on average after +1.9% in 2019) in the wake of those of petroleum products (−11.8% after +0.6%) impacted by the world sanitary crisis. The prices of natural and town gas fell back sharply (−11.3% after +2.4%) while those of electricity accelerated (+5.9% after +3.9%).

The prices of transport services also declined: −1.7% after +0.7%. The prices of airfares fell back: −4.4% after +0.9%, partly due to the decrease in the international airfares (−5.1% after +1.9%). The prices of passenger transport by rail accentuated their decrease: −5.3% after −0.3%. Contrariwise, the prices of passenger transport by road (+3.0% after +1.4%) and those of passenger transport by sea and inland waterway (+3.7% after +2.7%) accelerated in 2020.

In 2020, the prices of services for dwellings (actual rentals, supply of water and refuse collection fees) slowed down slightly: +0.3% on average, after +0.4% in 2019. The prices of actual rentals increased at the same rate as in 2019 (+0.4%). The prices of the other housing services – mainly supply of water and refuse collection fees – were more dynamic than in 2019 (+1.0% after +0.3%). The prices of thermic energy fell back significantly: −5.2 % after +0.6% in 2019.

The prices of « other services » slowed down: +1.4% on average, after +1.6% in 2019. In conjunction with the lockdown periods due to the sanitary crisis, the prices of accommodation services fell back (−0.4% after +1.6%) and those of recreational and cultural services decelerated (+0.9% after +1.7%). The prices of catering services increased by 1.3% as in 2019. The insurance prices were less dynamic (+0.7% after +1.6%) in the wake of the downturn of insurance connected with health prices (−0.2% after +1.4%). Contrariwise, the prices of social protection prices (child care services, retirement homes for elderly persons…) increased in 2020 (+2.0% after +1.7%).

The prices of health services increased in 2020: +0.4% after −0.1% in 2019. The prices of dental services rebounded (+0.9% after −0.9%), those of paramedical services were stable after −0.3 % in 2019 and those of medical services slowed down slightly (+0.5% after +0.6%).

The prices of communication services increased by 1.0% after −1.1% in 2019 in link with the rebound of wireless telephone services (+0.1% after −0.6%), those of internet access provision services (+1.6% after −4.7%) and those of bundled telecommunication services (+1.2% after −2.7%). The prices of postal services also rose: +6.9% after +6.6% in 2019.

In 2020, the food prices slowed down: +1.9% on average after +2.5%. The prices of fresh produces accelerated (+7.3% after +4.3%) in link with the increase in the fresh vegetables prices (+8.7% after +6.0%), the fresh fruits prices (+9.1% after +0.3%) and the fresh fish prices (+5.6% after +4.0%). Excluding fresh produces, food prices decelerated: +1.0% after +2.1% in the wake of those of bread and cereals (+0.6% after +1.5%), those of milk, cheese and eggs (+0.2% after +2.5%) and those of non-alcoholic beverages (stable in 2020 after +2.0%). The prices of meat increased slightly (+2.7% after +2.5%).

The tobacco prices rose in 2020: +13.7% on average after +10.6% in 2019, again due to a tax increase.

In 2020, the prices of manufactured products declined by 0.2% after −0.6% in 2019. The prices of clothing and footwear decreased (−0.5% after −0.3%): those of clothing rebounded (+0.4% after −0.6%) while those of footwear fell significantly (−2.7% after +0.4%).

The prices of « other manufactured product » increased again (+0.3% after −0.1%). The prices of furniture and furnishings prices (+2.0% after +0.2%), those of games, toys and hobbies (stable in 2020 after −3.0%) and those of camper vans, caravans and trailers (+0.2% after −0.3%) grew. The prices of major household appliances declined less (−0.7% after −2.1%). The prices of newspapers, books and stationery (+1.5% after +2.3%), those of glassware, tableware and household utensils (+0.7% after +1.1%) and those of vehicles (+0.4% after +0.6%) slowed down in 2020.

Moreover, the prices of health products fell less strongly than in 2019 (−2.0% after −2.8%) in link with those of pharmaceutical products (−2.6% after −3.7%).

According to their consumption structure, households were subject to a global inflation more or less pronounced but lower than in 2019. Thus, in 2020, the increase in prices was lower, in average, for households over 60 years of age (+0.4%). Furthermore, inflation was 0.2 points lower than the average for owners, and 0.1 points higher for renter households; the rents prices, which had a more important weight in the renter households consumption, changed slightly but other features in their consumption (tobacco, transport) explained these differences in inflation. Differences by standard of living, socio-professional category or family composition also existed, but they were less than 0.1 points compared to the average.