French inflation eases in May to 12-month low of 6%

PARIS  – 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 percent over one month, giving an annual inflation rate of 6 percent after 6.9 percent in April, EU-harmonized 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 percent in a Reuters poll of 17 economists.

Energy price inflation slowed in particular, dropping from 6.8 percent in April to 2 percent in May while food price inflation also eased, falling from 15 percent to 14.1 percent.

Food prices spiked after producers and retailers agreed in annual price negotiations in March to a 10- percent average increase, but have since agreed to reopen negotiations under pressure from the government.

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