Inflation continues to accelerate and is close to 5%



Inflation continued to accelerate in April in France to reach 4.8% over one year, according to an initial estimate published Friday, April 29 by INSEE.

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After 3.6% in February and 4.5% in March on a year-on-year basis (at its highest level since the 1980s), the rise in prices was moderated in April by a lesser acceleration in energy prices. But those of services, manufactured goods and food, on the other hand, progressed more rapidly than in previous months.

War in Ukraine

If energy prices “would remain up sharply year on year”, the fall in the price of petroleum products would lead to a slight decline in energy prices between March and April, specifies INSEE. In the context of the war in Ukraine,“This rise in inflation would be due to an acceleration in the prices of services, food and manufactured goods”advances the institute of statistics.

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After a 2.9% rise over twelve months in March, food prices should rise by 3.8% between April 2021 and April 2022. The prices of manufactured products should also go from a 2.1% increase to an increase of 2.7%. INSEE is due to publish its final estimate of inflation in April on May 13.

The harmonized CPI (HICP), which serves as a basis for comparison at European level, stands at 5.4% over one year, after rising 5.1% in March and 4.2% in February. However, France is experiencing lower inflation than many of its European neighbours. Germany thus announced Thursday, April 28 an increase of 7.4%, a record since the reunification of the country in 1990. The same day, the indicator reached 8.4% in Spain, down from March. (9.8%).

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