France January preliminary CPI +0.6% vs +0.3% y/y expected

Latest data released by INSEE - 2 February 2021

• Prior 0.0%
• CPI +0.2% vs 0.0% m/m expected
• Prior +0.2%

• HICP +0.8% vs +0.5% y/y expected
• Prior 0.0%
• HICP +0.3% vs 0.0% m/m expected
• Prior +0.2%

That's a modest lift in headline annual inflation for France to start the new year. This comes despite energy prices still proving to be a drag (-5.9% y/y) while services inflation was a notable contributor to the jump (+0.9% y/y).

We'll see if the trend can be sustained in the coming months or if this is a one-off spike - much like what to expect with Germany last month.