2019.05.2903:35:00UTC+00France Inflation Lowest Since September 2017

France's inflation eased in May to the lowest level since 2017, largely due to a slowdown in the prices of services, energy and food, the provisional estimate from the statistical office Insee showed Wednesday.

Consumer price inflation eased more-than-expected to 1 percent in May from 1.3 percent in April. A similar lower rate was last seen in September 2017. Economists had forecast prices to climb 1.1 percent annually.

At the same time, monthly inflation eased slightly to 0.2 percent, while the rate was forecast to remain unchanged at 0.3 percent.

Data showed that food prices moved up 2.3 percent from last year and energy prices advanced 3.4 percent. Cost of services increased 0.7 percent.

EU harmonized inflation came in at 1.1 percent annually versus 1.5 percent in April and the forecast of 1.3 percent.

Month-on-month, inflation based on the harmonized index of consumer prices halved to 0.2 percent from 0.4 percent. This was also below the expected rate of 0.3 percent.

Another report from Insee showed that producer prices in overall market advanced 2.2 percent on year in April, faster than the 1.8 percent increase in March. On month, prices fell 0.2 percent.

In French market, producer price inflation accelerated to 2.2 percent annually in April from 2 percent a month ago.