France May preliminary CPI +2.2% vs +2.4% y/y expected

• Prior +2.2%
• HICP +2.7% vs +2.5% y/y expected
• Prior +2.4%

There is a difference in the readings between the headline and the EU-harmonised one this month. INSEE attributes that to being a fall in reimbursements in the health sector and by the change over one year in energy prices, which weight is greater in the HICP. But overall, the signs are still pointing to moderating price pressures. Services inflation was seen at 2.7%, down from the 3.0% reading in April.

This article was written by Justin Low at www.forexlive.com.