Preliminary data published by the National Institute of Statistics and Economic Studies (Insee) showed that consumer prices rose by 0.2% in December after rising by 0.4% in November. Economists had expected an increase by 0.3%. Insee reported that prices for manufactured goods have not changed compared to November, while prices for services and food have increased.
In annual terms, consumer price growth has stabilized at 2.8%. Economists had expected price growth to accelerate to 2.9% per annum. The largest contribution to the price increase relative to December 2020 was made by the prices of manufactured goods and food, while tobacco prices have not changed, and energy and services prices have decreased.
The data also showed that in December, the harmonized index of consumer prices (HICP) grew by 3.4% per annum, unchanged from November. On a monthly basis, HICP growth slowed to 0.2% from 0.4%.
Meanwhile, French Finance Minister Bruno Le Maire said that the French economy is likely to grow significantly stronger in 2021 than the current government forecast suggests (+6.25%). As for 2022, Le Maire predicts 4% GDP growth. The Bank of France expects that the economy grew by 6.7% last year. Meanwhile, the IMF and the OECD forecast French GDP growth by 6.75% and 6.8%, respectively, by the end of 2021.