France January preliminary CPI +1.4% vs +1.5% y/y expected

• Prior +1.3%
• HICP +1.8% vs +1.9% y/y expected
• Prior +1.8%

There’s a good balance in the readings despite headline annual inflation nudging a little higher in January. Energy prices were seen up 2.8% year-on-year and that’s the large chunk of it, compared to the 1.2% year-on-year increase in December. Meanwhile, services inflation is seen slowing to 1.9% from 2.2% previously. And that is arguably the more important detail here.

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