| Actual | Previous | |
|---|---|---|
| Month over Month | 0.2% | -0.1% |
| Year over Year | 1.3% | 1.3% |
| HICP - M/M | 0.2% | -0.1% |
| HICP - Y/Y | 1.8% | 1.7% |
Highlights
In December 2024, the CPI rose 1.3 percent year-over-year, mirroring November's figure. Energy prices rebounded slightly, counterbalanced by declining prices in manufactured goods and a slowdown in food price growth, leading to overall stability in these sectors. Tobacco and service prices maintain steady growth rates.
Over the month, consumer prices rose by 0.2 percent, following a 0.1 percent fall in November. This uptick is attributed primarily to higher service prices, especially in transport, alongside a modest rise in energy prices, driven by petroleum products. In contrast, manufactured goods prices declined, while food and tobacco prices remained stable.
The harmonised index of consumer prices grew by 1.8 percent year-over-year in December, slightly up from November's 1.7 percent growth, with a 0.2 percent monthly increase. This modest inflation trend reflects a delicate balance between stabilising food and tobacco prices and sector-specific increases in energy and services. Overall, the data indicate restrained inflation, with sectoral variances influencing short-term price dynamics. The latest update leaves the RPI at 11 and the RPI-P at 13. This means that economic activities generally are slightly ahead of market expectations.
Over the month, consumer prices rose by 0.2 percent, following a 0.1 percent fall in November. This uptick is attributed primarily to higher service prices, especially in transport, alongside a modest rise in energy prices, driven by petroleum products. In contrast, manufactured goods prices declined, while food and tobacco prices remained stable.
The harmonised index of consumer prices grew by 1.8 percent year-over-year in December, slightly up from November's 1.7 percent growth, with a 0.2 percent monthly increase. This modest inflation trend reflects a delicate balance between stabilising food and tobacco prices and sector-specific increases in energy and services. Overall, the data indicate restrained inflation, with sectoral variances influencing short-term price dynamics. The latest update leaves the RPI at 11 and the RPI-P at 13. This means that economic activities generally are slightly ahead of market expectations.
Definition
The consumer price index (CPI) is a measure of the average price level of a fixed basket of goods and services purchased by consumers. Monthly and annual changes in the CPI represent the main rates of inflation. The national CPI is released alongside the HICP, Eurostat's harmonized measure of consumer prices. A flash estimate was released for the first time in January 2016 and is now published towards the end of each reference month.
Description
The consumer price index is the most widely followed indicator of inflation. An investor who understands how inflation influences the markets will benefit over those investors that do not understand the impact. In countries where monetary policy decisions rest on the central bank's inflation target, the rate of inflation directly affects all interest rates charged to business and the consumer. As a member of the European Monetary Union, France's interest rates are set by the European Central Bank.
France like other EMU countries has both a national CPI and a harmonized index of consumer prices (HICP). The HICP is calculated to give a comparable inflation measure for the EMU. Components and weights within the national CPI vary from other countries, reflecting national idiosyncrasies.
Inflation is an increase in the overall prices of goods and services. The relationship between inflation and interest rates is the key to understanding how indicators such as the CPI influence the markets - and your investments. As the rate of inflation changes and as expectations on inflation change, the markets adjust interest rates. The effect ripples across stocks, bonds, commodities, and your portfolio, often in a dramatic fashion.
By tracking inflation, whether high or low, rising or falling, investors can anticipate how different types of investments will perform. Over the long run, the bond market will rally (fall) when increases in the CPI are small (large). The equity market rallies with the bond market because low inflation promises low interest rates and is good for profits.
France like other EMU countries has both a national CPI and a harmonized index of consumer prices (HICP). The HICP is calculated to give a comparable inflation measure for the EMU. Components and weights within the national CPI vary from other countries, reflecting national idiosyncrasies.
Inflation is an increase in the overall prices of goods and services. The relationship between inflation and interest rates is the key to understanding how indicators such as the CPI influence the markets - and your investments. As the rate of inflation changes and as expectations on inflation change, the markets adjust interest rates. The effect ripples across stocks, bonds, commodities, and your portfolio, often in a dramatic fashion.
By tracking inflation, whether high or low, rising or falling, investors can anticipate how different types of investments will perform. Over the long run, the bond market will rally (fall) when increases in the CPI are small (large). The equity market rallies with the bond market because low inflation promises low interest rates and is good for profits.
