French inflation is 1.0 percent in February

14th March 2007, Comments 0 comments

PARIS, March 14, 2007 (AFP) - French consumer prices rose by 0.2 percent in February on a monthly basis, taking 12-month inflation to 1.0 percent, the statistics institute INSEE reported on Wednesday.

PARIS, March 14, 2007 (AFP) - French consumer prices rose by 0.2 percent in February on a monthly basis, taking 12-month inflation to 1.0 percent, the statistics institute INSEE reported on Wednesday.

The calculation of inflation has become a hot issue in France during campaigning for presidential elections in April in May.

There is controversy about the spread of weighted prices covered by the index used by INSEE and a widespread impression that prices in a household's daily shopping basket have risen strongly.

The data from INSEE showed that prices had fallen by 0.3 percent in January taking 12-month inflation then to 1.2 percent.

INSEE said that the prices of some services had risen in January and February owing to seasonal factors connected with school holidays, winter sports holidays, and the end of the retail sales period.

The European Central Bank has set 2.0 percent as its upper target for inflation in the eurozone, of which France is a member.

The ECB has set this target partly on the basis of experience that when inflation exceeds 2.0 percent, people begin to anticipate further inflation in their decision making and this itself can cause prices to rise.

Copyright AFP

Subject: French news

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