France recorded its lowest inflation in four years in February, thanks largely to lower electricity prices.
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| Prices of services, industrial goods and tobacco in France are expected to slow down, while food prices are expected to increase slightly. (Source: Reuters) |
According to a preliminary report released by the French National Institute of Statistics and Economic Studies (INSEE) on February 28, the country's consumer price index (CPI) in February is expected to increase by only 0.8% compared to the same period last year.
This is also the lowest inflation rate since February 2021.
The low inflation in February was mainly due to lower electricity prices, said Sylvain Bersinger, chief economist at Asterès, a consultancy. French energy prices fell 5.7% last month compared to the same month a year earlier.
After two consecutive years of increases, France's average electricity price has dropped by 15% since February 1 for more than 24 million people in the country.
Besides, prices of services, industrial goods and tobacco also tend to slow down, while food prices are forecast to increase slightly.
According to the economic forecast published in December 2024, the Bank of France assessed that the country's inflation will continue to decrease and reach an average of 1.6% in 2025.
The bank also stressed that cooling energy prices will be a major factor supporting this downward trend.
In addition, Mr. Bersinger predicted that inflation is unlikely to remain at such low levels in the coming months and quarters because developments in the industrial and agricultural production chains will push prices up.
On the other hand, slowing wage growth will prevent a strong recovery in inflation. While wages in France rose by more than 5% in the fourth quarter of 2022, they rose by just 2.1% in the fourth quarter of 2024. This will also slow the rise in business costs, thereby limiting price increases.
Source: https://baoquocte.vn/mot-quoc-gia-eu-ghi-nhan-lam-phat-giam-xuong-muc-thap-nhat-trong-4-nam-306046.html
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