Inflation accelerated in 2017, averaging 1% after being 0.2% in 2016
Inflation accelerated in 2017, averaging 1% after being 0.2% in 2016 and 0% in 2015, INSEE said Friday in a statement.
„The price dynamic is the result of a sharp rebound in energy prices and a sharp rise in food prices,“ says the statistical institute.
This is the highest average inflation rate since 2012, when it stood at 2%.
Excluding tobacco, consumer prices also rose by 1% on average, according to INSEE, which is in line with the government’s forecast in its public finance program published at the end of September.
Monthly change in the consumer price index from December 2016 to December 2017 and 1-year evolution
This average rate of inflation is equivalent to comparing prices for the whole of 2017 (from January to December) compared to the whole of 2016.
It is distinct from the inflation rate in December over one year, which reached 1.2%, according to the final estimates published by INSEE earlier in the morning.
In particular, energy prices rebounded sharply in 2017, by 6.2% after falling 2.8% in 2016. This increase was boosted by the „increased taxation of fuels in January 2017 and the rise in the average price of Brent, „says the public body.
The rise in food prices accelerated to 1% after 0.6% in 2016, driven in particular by higher prices for meat and butter.
Those of tobacco increased by 2.7%, „in connection with the raising of taxes“.
On the other hand, prices of manufactured goods fell by 0.6%, following a 0.5% decline the previous year.
Communication services companies, for their part, fell sharply, by 3.5%, following three years of gains, weighed down by the fall in prices of telecommunications services.
Conversely, the prices of transport and health services rose by 2% and 1.3%, respectively, an increase due to the „revalorization of consultation fees provided for by the medical agreement signed in August 2016“.