PARIS, June 14 (Xinhua) -- France's consumer price index (CPI) went up by 2.3 percent in May 2024 year-on-year, the country's National Institute of Statistics and Economic Studies (INSEE) said in a report on Friday.
According to the report, the slight increase in inflation resulted from a year-on-year rise in energy prices, due to a base effect on prices of petroleum products. 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.
Food prices also accelerated slightly year-on-year. On the other hand, prices of services slowed down, as did those of tobacco. Meanwhile, manufactured product prices were stable.
French Economy and Finance Minister Bruno Le Maire said at the end of May that the battle against rising prices in France has been won. "I had also announced that we would be at around 2 percent inflation by the beginning of 2024," he added. "We are now at the end of May 2024, and we are at around 2 percent inflation, so the gamble has been won."
This slight increase in inflation follows the European Central Bank's announcement on June 6 that it would cut key interest rates by 25 basis points, and keep policy rates sufficiently restrictive for as long as necessary to achieve its aim of returning inflation to a 2 percent medium-term target. ■
