The rise in consumer prices accelerated slightly in January, the inflation rate reaching 6% over one year after 5.9% in December, according to an initial estimate published Tuesday by INSEE. “This slight rise in inflation would be due to the acceleration in food and energy prices”, up 13.2% and 16.3% respectively over one year, indicates the Institute. National Institute of Statistics and Economic Studies in its press release.
Energy prices “would rebound due to the rise in the price of petroleum products, partly due to the end of fuel discounts, and the regulated rise in gas prices”. On January 1, 2023, the discount at the pump of 10 euro cents per liter and the 4% cap on the gas price increase ended (in favor of a 15% cap in 2023).
Service price growth has slowed
By way of comparison, energy prices had increased by 15.1% over one year in December and by 19.9% in January 2022. As for food products, the rise in prices accelerated in January at the end of both for fresh products (+9.8% over one year after +9.3% in December 2022) and other food products (+13.8% after +12.6%). Conversely, the increase in the prices of services slowed down during the first month of 2023, falling from 2.9% to 2.6% over one year.
The evolution of the cost of manufactured products remained stable (+4.6% in December 2022 and in January 2023), while tobacco prices rose a little less rapidly than in December (+0.2% after + 0.3%). A reference figure for comparisons with other European countries, the harmonized consumer price index (HICP) stood at 7% over one year in January, after 6.7% in December. INSEE is due to publish a second estimate of inflation in January on February 17.
Source: Europe1
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