| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Month over Month | -0.1% | -0.1% to -0.1% | -0.1% | -0.1% |
| Year over Year | 0.9% | 0.9% to 0.9% | 0.9% | 0.9% |
| HICP - M/M | -0.2% | -0.2% to -0.2% | -0.2% | -0.2% |
| HICP - Y/Y | 0.8% | 0.8% to 0.8% | 0.8% | 0.8% |
Highlights
Consumer prices fell 0.2 percent in November from the previous month while rising 0.9 percent year-on-year, matching both preliminary estimates and the Econoday consensus. Core inflation was down 0.2 percent from October and 1.0 percent higher than a year ago.
Services prices fell 0.5 percent from October led by a 5.4 percent fall in transportation services and 2.1 percent lower prices for communications. From November of last year, prices for services rose 2.2 percent.
Manufactured product prices were 0.1 percent lower month-on-month and down 0.6 percent from a year ago. With monthly declines of 0.1 percent for medical products and a 0.2 percent fall in prices for other manufactured goods more than offsetting a 0.1 percent increase for clothing and footwear.
The HICP used to compare inflation among European economies fell 0.2 percent from October and rose 0.8 percent from a year ago, in line with both the Econoday consensus and preliminary reading.
Inflation continues to remain subdued in France and broadly in Europe.
Services prices fell 0.5 percent from October led by a 5.4 percent fall in transportation services and 2.1 percent lower prices for communications. From November of last year, prices for services rose 2.2 percent.
Manufactured product prices were 0.1 percent lower month-on-month and down 0.6 percent from a year ago. With monthly declines of 0.1 percent for medical products and a 0.2 percent fall in prices for other manufactured goods more than offsetting a 0.1 percent increase for clothing and footwear.
The HICP used to compare inflation among European economies fell 0.2 percent from October and rose 0.8 percent from a year ago, in line with both the Econoday consensus and preliminary reading.
Inflation continues to remain subdued in France and broadly in Europe.
Market Consensus Before Announcement
The consensus sees no revision from the flash at minus 0.1 percent on month and up 0.9 percent on year for the November final.
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.
