No inflation in March, according to INSEE, thanks to the drop in energy prices – Liberation

Consumer prices in France increased by 0.8 % in March over a year, an evolution identical to that of February, According to a provisional INSEE estimate published this Friday, March 28.

The drop in energy prices (-6.2 %) and manufactured products (-0.2 %) offset the acceleration of food prices (+0.6 %), and especially fresh products (+3.8 %). The services increased by 2.3 %, including insurance, said the National Institute of Statistics. Tobacco inflation has slowed down to +4.1 %.

After two years of successive increases, an average decrease of 15 % of electricity prices entered into force on February 1 for more than 24 million subscribers at the regulated rate. A first in ten years. This drop concerned the approximately 20.4 million households at the regulated EDF rate (60 % of the 34 million residential subscribers) to which are added the 4 million customers indexed to this rate. According to Sylvain Bersinger, chief economist at Asterès, the drop in oil prices can also explain the fall in energy prices.

Over a month, consumer prices increased by 0.2 % in March, pulled by the prices of manufactured products, including clothing and shoes, said INSEE. Food prices are also increasing, unlike those of energy.

The harmonized consumer price index (IPCH), which allows comparisons between European countries, increased by 0.9 % in March over one year. Again, a progression identical to that recorded in February. It increased by 0.2 % over a month, after +0.1 % in February.

For the coming months, « The inflation forecasts become more complex due to the unpredictable policy (by Donald Trump), which may have inflationary or deflationist impact according to the decisions that will be taken » In terms of customs duties or hydrocarbon production for example, said Sylvain Bersinger in a note.