France: Inflation picks up slightly

Inflation continues to rise gradually, driven by the contribution of energy prices, now slightly positive. Core inflation continues to trend slightly downwards.
We expect these trends to continue in 2017 and forecast a mild increase in inflation (from +0.5% today to +1.3% year-on-year at end-2017).
Inflation, less low, will reduce household purchasing power gains. As a result, consumer spending is expected to slow down significantly, placing a drag on growth.

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BNP Paribas Team

BNP Paribas

BNP Paribas Economic Research Department is a worldwide function, part of Corporate and Investment Banking, at the service of both the Bank and its customers.

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