Inflation fell to 5.9% in January against 6.1% in December and 6.3% in November 2019, National Institute of Statistics (French: INS) figures showed Thursday.
This drop is mainly due to the slowing down in the pace of food price increases (4.4% against 5.8% last month).
Food prices up 4.4%
Foodstuff prices posted a 4.4% rise in January (+5.38% in December 2019), driven by an increase in the prices of fruits (+12.5%), fish (+7.1%), meat (+5.8%) and cheese and eggs (+5.3%). Meanwhile, olive oil prices dropped 11.3% compared to January 2019.
Prices of manufactured goods climb up 7.8%
Prices of manufactured goods showed a year-on-year rise of 7.8% as a result of a hike in the prices of routine house maintenance products (+10.4%) and building materials (+7.6%).
Prices of services likewise grew 4.9%, pushed by a rise in health services (9.2%) and rents (5.7%). Public services, in the meantime, showed price stability.
Core inflation and inflation of regulated products
The core inflation rate (exclusive of foodstuff and energy) stood at 6.8% in January 2020 against 6.7% in December 2019. Prices of unregulated products edged up 6% against 5.3% for administered prices. Unregulated food products posted a 5% rise in comparison with 1.4% for regulated food products.
Consumer prices edge up 0.6%
Consumer prices posted a 0.6% increase in January against 0.3% in December 2019. This is the result of price hikes seen in foodstuff (0.8%), health services and products (+1.2%), furniture and household items (+0.9%) and various goods and services (+0.9%).
Foodstuff prices post 0.8% rise
Prices of foodstuff rose 0.8% on a month-to-month basis, in the wake of the price review of several subsidized products (sugar, salt, coffee powder and rice).
Similarly, poultry and fresh fruit prices grew 2.5% and 2.3%, respectively, against a 3.4% drop in olive oil price.
Higher prices for health services and products
Prices in this group increased 1.2% on a month-to-month basis, driven by a surge in the prices of pharmaceuticals (+1.8%) and ambulatory services (+1%).
Administered prices go up 0.4%
In January, administered prices edged up 0.4% as a result of the price review of foodstuff (+0.7%) and non-food products grew 0.4%.