Steady Inflation in France

In December, France's inflation rate held steady at 1.3%, as reported by INSEE, the national statistical office. This stability comes amidst varying costs across different sectors, with notable increases in tobacco and energy prices.

Key Drivers of Inflation

The primary driver behind the inflation rate was the cost of tobacco, which saw an 8.7% increase compared to the previous year. Energy prices also contributed, rising by 1.2% year-over-year. In contrast, food prices remained stable, showing no significant change from the previous year.

Monthly and Annual Outlook

Looking ahead, consumer prices are expected to rise by 0.2% on a monthly basis. The Harmonized Index of Consumer Prices (HICP) for all items is forecasted to increase by 1.8% year-on-year, marking a slight uptick from the previous month's figures.