France's inflation drops to four-year low at 0.8% YoY in February

For the first time since February 2021, the YoY change should have been below 1 per cent, an INSEE release said.

The sharp slowdown in prices can be explained by a sharp drop in energy prices: electricity prices would have dropped sharply month on month (MoM), whereas they had risen sharply in February 2024.

Over the year, the prices of manufactured products would have also slowed down in February, but to a lesser extent.

Consumer prices were expected to be stable in February MoM, after a 0.2-per cent MoM rise in January. The rebound in manufactured goods prices after the winter sales should be offset by the fall in prices of electricity, in particular regulated tariffs, which were down by 15 per cent.

The harmonised index of consumer prices is estimated to have risen by 0.9 per cent YoY in February after a 1.8-per cent rise in January. It is estimated to be stable MoM after a 0.2-per cent MoM drop in the previous month.

ALCHEMPro News Desk (DS)