French consumer price drop recalls 1960's fall

22nd February 2005, Comments 0 comments

PARIS, Feb 22 (AFP) - Clothing sales and cheaper manufactured products pushed French consumer prices down by 0.5 percent in January, the biggest drop since the mid 1960's, data released Tuesday by the national statistics institute showed.

PARIS, Feb 22 (AFP) - Clothing sales and cheaper manufactured products pushed French consumer prices down by 0.5 percent in January, the biggest drop since the mid 1960's, data released Tuesday by the national statistics institute showed.

The fall brought annual inflation to 1.6 percent, the lowest level since July 2002, the Insee institute said.

"One has to go back to the mid 1960's to find as big a fall" as that from December to January, Insee said in a statement.

The decrease was limited only by rises for some services, since the price of tobacco was spared increases seen in previous years.

When volatile energy and fresh food prices were stripped out, French inflation was stable on a monthly basis and rose by 1.2 percent on the year, lower than December's annual rate of 1.3 percent.

Finally, the harmonised index of consumer prices that allows comparison across the 25-nation European Union decreased by 0.6 percent on a monthly basis.

© AFP

Subject: French News

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