(Reuters) – French inflation dropped below 1% for the first time in four years in February, preliminary data from statistics agency INSEE showed on Friday.
France’s harmonized inflation rate, adjusted for comparison with other euro zone countries, was 0.9% year-on-year in February, INSEE said.
It was the first time the rate was below 1% since February 2021.
A poll of 16 economists surveyed by Reuters had on average expected a 1.2% rise of the harmonized consumer price index in the second month of the year, with estimates ranging from 0.9% to 1.7%.
Price rises slowed down after a 1.8% increase in January.
The clear slowdown is explained by a sharp fall in energy prices with the electricity ones dropping significantly, whereas they had risen a lot in February 2024, INSEE said.
Increases in service prices slowed down, as did those of manufactured goods and tobacco, albeit to a lesser extent. Food prices accelerated slightly, INSEE said.
On a month-on-month basis, consumer prices were stable in February after a 0.2% rise in January.
The rebound in the prices of manufactured goods after the winter sales was offset by lower electricity prices, particularly regulated tariffs, which fell by 15%.
Food prices were slightly down month-on-month, while service prices accelerated slightly, INSEE said.
(Reporting by Michal Aleksandrowicz in Gdansk; Editing by Milla Nissi)
