Informations Rapides · 14 June 2024 · n° 146

In May 2024, consumer prices were stable over one month and increased by 2.3% year on year Consumer price index - final results - May 2024

In May 2024, the Consumer Price Index (CPI) were stable over one month after +0.5% in April. The stability in prices is the result of the decrease in prices of energy (‑1.2% after ‑0.3%) due to the downturn in prices of petroleum products (‑2.4% after +0.7%), which is offset by the rise in prices of food (+0.4% after +0.1%) generated by the strong acceleration in those of fresh products (+2.9% after +0.2%). For the prices of manufactured products, they increase slightly (+0.1% after 0.0%) as for those of services (+0.1% after +1.0%). Over one month the prices of tobacco were stable as in April.

Seasonally adjusted, consumer prices were also stable in May 2024, after +0.5% in April.

Year on year, consumer prices went up by 2.3% in May 2024, after +2.2% in April. This slight increase of inflation resulted from the year-on-year rise in prices of energy (+5.7% after +3.8%) due to a base effect on prices of petroleum products (+2.9% after ‑0.7%): these prices fell over a month between April and May 2024, but had fallen more sharply between April and May 2023, generating a rise in inflation over a year. The prices of food accelerated slightly year-on-year (+1.3% after +1.2%). Contrariwise the prices of services slowed down (+2.8% after +3.0%) as for those of tobacco (+8.7% after +9.0%) slowed down. Manufactured product prices were stable (after -0,1%).

Year on year, core inflation decreased again, reaching +1.7% in May 2024, after +1.9% in April.

The Harmonised Index of Consumer Prices (HICP) slowed down over one month (+0.1% after +0.6% in April); year on year, it increased by 2.6% in May 2024, after +2.4% in April. The difference between the HICP and the CPI change should be explained by the fall in reimbursements in the health sector and by the year-on-year evolution of energy prices, which weight is greater in the HICP.

Year on year, the prices of energy rose by 5.7% in May 2024, after +3.8% in April.

Despite a fall in prices of petroleum products over a month (-2.4% en May), this acceleration can be explained by their strong rebound over a year (+2.9% in May after ‑0.7% in April), notably those of liquid fuel (+7.4% after ‑0.9%), diesel (+2.5% after ‑0.8%) and petrol (+1.8% after ‑0.9%). This “base effect” is explained by a much sharper fall between April and May 2023 than between April and May 2024.

The prices of electricity accelerated slightly over a year (+19.5% after +19.2%) while those of gas decreased at a softer rate than in April (‑12.9% after ‑13.6%). Conversely, the decline of the prices of solid fuel accelerated year-on-year (‑9.8% after ‑9.3%).

Year on year, service prices increased by 2.8% in May 2024, after +3.0% in April.

The prices of transport slowed down again over one year (+0.2% after +0.6%) due to the slowdown in prices of transport by train (+2.4% after +6.2%). Those of airfares decreased over one year (‑0.2% after ‑0.1%) while those of transport by road are almost stable (+0.1% after ‑3.0%).

Year on year, the prices of “other services” slowed down too (+3.9% after +4.2%) notably those of catering (+3.1% after +3.5%), social protection (+3.6% after +3.9%), insurance services (+7.8% after +8.6%) and cultural and recreational services (+4.4% after +5.0%). Contrariwise prices of accommodation services accelerated over one year (+2.9% after +2.8%).

The prices of communications services continued to decrease (‑6.8% after ‑6.6%). And those of rents, water and household refuse collection slowed down slightly (+2.7% after +2.8%).

Contrariwise, the prices of health services accelerated over one year (+1.6% after +1.4%).

Year on year, food prices rose by 1.3% in May 2024, after +1.2% in April. This slight acceleration ended a series of thirteen months of slowdown.

This was due to the clear rebound in prices of fresh products (+3.5% after ‑0.7%): prices were rising for fresh vegetables (+3.1% after ‑4.7%), fresh fish (+3.0% after +0.4%) and fresh fruits (+2.5% after +0.6%).

Excluding fresh products, the year-on-year rise in food prices softened again (+0.9% after +1.5%) notably for bread and cereals (+0.9% after +1.3%), meat (+0.1% after +0.5%), milk, cheese and eggs (+0.8% after +1.4%), sugar, jam, honey, chocolate and confectionery (+1.4% after +2.5%), and alcoholic (+1.6% after +2.0%) and non-alcoholic beverages (+1.8% after +2.7%). Conversely the prices of oils and fats accelerated slightly (+3.3% after +3.2%) still pulled by those of olive oil.

Year on year, the prices of manufactured products were stable in May 2024, after ‑0.1% in April.

The prices of “other manufactured products” accelerated over one year (+0.2% after +0.0%), due to the combined effect of the less sustained fall in prices of games, toys and hobbies (‑1.3% after ‑3.7%) and major household appliances (‑2.7% after ‑2.9%), the slight rise of those of vehicles (+0.2% after ‑0.1%) and the slight acceleration in prices of glassware, tableware and household utensils (+0.6% after +0.5%). Those of equipment for sport increased at the same rate as in April (+0.6%). On the contrary, the prices of newspapers and periodicals slowed down (+2.6% after +2.8%) and the fall is more significant than for previous month for the non-durable household goods (‑0.7% after ‑0.1%) and furniture and furnishings (‑0.4% after ‑0.3%).

The prices of health products decreased at a slower pace as the previous month (‑1.2% after ‑1.4%).

Finally, the prices of clothing and footwear slowed down slightly (+0.6% after +0.7%).

Compared to the provisional estimates published on 31 May 2024, the year-on-year changes in CPI has been revised upwards by 0.1 points and its month-on-month change is confirmed. The month-on-month and year-on-year changes in HICP have been revised downwards by 0.1 points.