`France’s Inflation Rate Increases to 1.7 Percent Due to Rising Energy Costs

Paris: France's inflation rate rose to 1.7 percent on an annual basis in March, compared to 0.9 percent in February, driven mainly by rising energy prices. According to Yemen News Agency, data from the French National Institute of Statistics and Economic Studies (INSEE) showed that energy prices rose by 7.4 percent in March on an annual basis, after a decline of 2.9 percent in February. This increase was driven by a rise in petroleum product prices of 18.1 percent, with diesel increasing by 23.5 percent, gasoline by 9.9 percent, and liquid fuel by 40.9 percent. In contrast, electricity prices continued to decline by 3.1 percent and gas by 2.2 percent. For other components, services prices accelerated on an annual basis by 1.7 percent, while food prices slowed to 1.8 percent, whereas manufactured goods prices fell by 0.5 percent. The harmonized index of consumer prices at the European Union level rose by 2.0 percent on an annual basis in March, compared to 1.1 percent in February, representing a slight upwa rd revision from the initial estimate of 1.9 percent. In contrast, core inflation, which excludes food and energy prices, rose to 1.1 percent on an annual basis in March, compared to 0.9 percent in February, reflecting continued inflationary pressures beyond the more volatile components. On a monthly basis, inflation rose by 1 percent in March, compared to 0.9 percent in the previous reading, supported by rising energy prices, as petroleum product prices jumped by 17.1 percent after 1.8 percent in February. This rise occurred amid the repercussions of the war in the Middle East that began on February 28, while energy prices overall rose by 8.9 percent after 0.3 percent in February.