French HICP inflation expected at 0.4% yoy in May

French HICP inflation is expected to rise to 0.4% yoy in May after its reading of 0.1% yoy in April. France is traditionally the last of the big four European countries to publish their consumer price numbers as they do not have any flash readings. 

As for the other euro area countries, the bulk of the recovery in consumer prices is expected to stem from the rebound in energy prices, says Societe Generale. But more surprising was the significant increase in the prices paid for services, specifically transport and accommodation. This is due to the May holidays and the same trend is likely to be true for France and the goods and food components are expected to remain relatively stable, adds SocGen. 

For the April reading, French HICP inflation was at 0.1% yoy. The national core component rose markedly from 0.2% yoy to 0.4% yoy in April. According to Societe Generale, French HICP inflation is likely to average 0.4% in 2015 and 1.4% in 2016, while the core metric should remain stable at 0.8% in 2015 and 1.1% in 2016.