French inflation eases in May to 12-month low of 6.0%
2:49 am Wednesday, May 31st, 2023
PARIS (Reuters) – French inflation cooled more than expected in May to its lowest level in a year as energy and food price increases moderated, according to preliminary official data on Wednesday.
Consumer prices dipped 0.1% over one month, giving an annual inflation rate of 6.0% after 6.9% in April, EU-harmonised data from the INSEE statistics agency showed.
That was the lowest since May 2022 and fell short of an average expectation for a reading of 6.4% in a Reuters poll of 17 economists.
Energy price inflation slowed in particular, dropping from 6.8% in April to 2.0% in May while food price inflation also eased, falling from 15.0% to 14.1%.
Food prices spiked after producers and retailers agreed in annual price negotiations in March to a 10% average increase, but have since agreed to reopen negotiations under pressure from the government.
(Reporting by Leigh Thomas; editing by Richard Lough)
