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Inflation drops to 5.1% year on year in May

The slowdown in the rise in energy prices, services but also food has lowered inflation, according to INSEE.

By VD with AFP

The cost of food products has risen less rapidly (photo illustration).
© SERGE TENANI / Hans Lucas / Hans Lucas via AFP

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I’Inflation slowed markedly in France in May to stand at 5.1% over one year, after reaching 5.9% in April and more than 6% at the start of the year, according to an initial estimate published on Wednesday by the Insee. “This fall in inflation would be due to the year-on-year slowdown in energy prices […] manufactured goods and services”, but also food, up 14.1% year on year in May after growing 15% in April, indicates the National Institute of Statistics and Economic Studies.

The increase in the price of fresh products (+10.4% over one year) continued almost at the same pace as in April (+10.6%), but the cost of other food products, on the other hand, increased less rapidly (14.8% against 15.8% in April). Disinflation is even clearer for energy, where prices rose 2% year on year in May, after a 6.8% jump in April and double-digit growth in recent months.

Price rise slows

The cost of manufactured goods (+4.1% year on year in May) and services (+3%) also decelerated, but less rapidly. Tobacco, the cost of which jumped 9.8% over one year in May, is the only exception to the disinflation movement and its price is accelerating for the third consecutive month, notes INSEE all the same. Benchmark indicator for comparisons between European countries, the harmonized index of consumer prices (HICP) rose by 6% year on year in May, a growth rate nearly one point lower than in April (+6 .9%). Insee is due to publish a second estimate of inflation in May in mid-June.

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