Inflation growth in France exceeded expectations

By Alimat Aliyeva

In May 2024, consumer prices in France, harmonized with European Union standards, increased by 2.7% year-on-year, Azernews reports.

Inflation accelerated compared to April, when prices rose by 2.4%. The consensus forecast of experts surveyed by Trading Economics suggested a more moderate acceleration of inflation, up to 2.5%.

Consumer prices rose by 0.2% this month compared to April, when there was an increase of 0.6%. The dynamics of this indicator coincided with market forecasts.

Consumer prices calculated according to French standards increased by 2.2% year-on-year in May and remained unchanged from the previous month. A month earlier, the first indicator also increased by 2.2%, the second by 0.5%.

The growth rate of food prices in France in May increased to 1.3% year-on-year from 1.2% in April, and energy prices increased to 5.8% from 3.8%. Prices for manufactured goods remained unchanged after a 0.1% decline a month earlier, and the growth rate of prices for services slowed to 2.7% from 3%.

Meanwhile, consumer spending in France decreased by 0.8% in April compared to the previous month. Analysts on average expected them to grow by 0.2%. In March, consumer spending in the country increased by 0.5%.