France expects May CPI to rise by 0.7 pct, lowest increase since February 2021
PARIS, May 27 (Xinhua) -- France's consumer price index (CPI) is expected to rise only by 0.7 percent year-on-year in May, marking the lowest increase since February 2021, the French National Institute of Statistics and Economic Studies (INSEE) said Tuesday.
INSEE attributed the expected drop in inflation to a slowdown in service prices, particularly in the transport sector. A sharper decline in communication costs and a deeper fall in energy prices also contributed.
According to INSEE's preliminary report, the service prices are expected to rise by 2.1 percent year-on-year in May, down from 2.4 percent in April, while energy prices are projected to decrease by 8.1 percent in May, against the 7.8 percent in the previous month.
"The current developments are rather disinflationary," said Sylvain Bersinger, an economist at consulting firm Asteres. "It is therefore likely that inflation will remain low until the end of the year," he told the French economic newspaper Les Echos.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
Bangladeshi chief adviser urges Chinese investors to make Bangladesh their home, production hub
In this photo taken on September 14, 2024, a Bangladeshi vendor sells Hilsa fish at a market in Dhaka. Muhammad Yunus invited Chinese investors to explore the extensive opportunities that Bangladesh offers in textiles, endowments, pharmaceuticals, agro-processing, fisheries, food, and information technology. - AFP DHAKA: Bangladeshi interim government's Chief Adviser Muhammad Yunus on Sunday (June 1) urged Chinese investors to make Bangladesh their home and production hub. During his speech at the China-Bangladesh Conference on Investment and Trade, Yunus said Chinese companies are the masters of manufacturing, and Bangladesh wants to be their partner. He said the interim government has been steadfast in implementing reforms, enhancing the investment climate, streamlining regulatory frameworks and ensuring a conducive environment for business operations. Yunus invited Chinese investors to explore the extensive opportunities that Bangladesh offers in textiles, endowments, pharmaceuticals, agro-processing, fisheries, food, and information technology. The conference attracted more than 400 representatives from Chinese and Bangladeshi enterprises and business associations. - Xinhua
The Star
4 hours ago
- The Star
French state makes offer to buy part of Atos' former Advanced Computing unit
The logo of Atos is seen on a company building in Nantes, France, March 11, 2022. REUTERS/Stephane Mahe/File Photo PARIS (Reuters) -The French state has made a 410 million euros ($466.33 million)confirmatory offer to buy part of the former Advanced Computing business of tech company Atos, said Atos on Monday. Once seen as a European tech champion, with a market value of more than 10 billion euros at its highest, Atos emerged from financial troubles in 2024 thanks to a restructuring agreement with its creditors. Atos said the French state's offer for its former Advanced Computing business was worth 410 million euros on an enterprise value basis. It added that its Vision AI businesses did not form part of the planned deal with the French government, and that Vision AI would be repositioned within Atos' Eviden business unit. ($1 = 0.8792 euros) (Reporting by Mathieu Rosemain and Sudip Kar-Gupta; Editing by Sonali Paul and Kim Coghill)
The Star
6 hours ago
- The Star
Lao economic indicators show signs of recovery amid global uncertainty
Tourists visit the town of Luang Prabang, a Unesco world heritage site in Laos, July 15, 2022. Foreign tourist arrivals rose by 21 per cent year-on-year to 4.12 million, generating US$1.13 billion in revenue. - Xinhua) VIENTIANE: The Lao government has observed encouraging signs of economic recovery, despite ongoing domestic economic difficulties and global turbulence. Inflation dropped to 8.3 per cent in May, marking the first single-digit rate since May 2022. This reflects a steady decline over 11 consecutive months since June last year, easing the price hikes that had affected the country for years. Improved revenue collection also supported fiscal operations, with government earnings reaching 93 percent of the first half-year target, amounting to 31,773 billion kip (US$1.476 billion). However, expenditure reached only 56.26 per cent, or 21,682 billion kip, of the planned budget. 'The government will strive to meet or exceed its revenue targets,' the government spokesperson Sonexay Sitphaxay told local media on Friday (May 30) following the two-day cabinet meeting for May. Exports (excluding electricity) rose 16.2 per cent from the previous month to over US$662 million (14,284 billion kip), resulting in a trade surplus of over US$14 million (302 billion kip). Increased exports have strengthened foreign reserves, now sufficient to cover at least five months of imports. 'Debt servicing for both domestic and external obligations is proceeding as planned,' added Sonexay, who also serves as Minister to the Prime Minister's Office. Chaired by Prime Minister Sonexay Siphandone, the monthly cabinet meeting reviewed implementation of the socio-economic development plan and expected performance for the first half of 2025 and preparations for the second half. The government has set a growth target of 4.8 per cent this year, up from 4.6 per cent in 2024. The cabinet noted that efforts to ramp up domestic production and reduce imports are gaining momentum, as Laos is becoming largely self-sufficient in producing staple foods to meet domestic consumption needs. Meanwhile, tourism continues to rebound, thanks to improved transport networks and promotional campaigns under the Visit Laos Year 2024 initiative. Foreign tourist arrivals rose by 21 per cent year-on-year to 4.12 million, generating US$1.13 billion in revenue. The cabinet also discussed measures to further develop transport infrastructure. Key projects include the nearly completed bridge across the Mekong River linking Lao Xayaboury and Bokeo provinces, and the Fifth Lao-Thai Friendship Bridge connecting Borikhamxay province with Thailand's Bueng Kan province, set to open by year-end. These projects are expected to boost trade and regional connectivity. Efforts are underway to enhance passenger and freight transport, leveraging the Laos-China and Laos-Thailand railways and the Thanaleng Dry Port - Laos integrated logistics hub. Investment promotion remains a priority with effort being accelerated to improve the business environment. In May alone, seven new projects were approved, worth more than 9,244 billion kip and US$3 million (more than 64 billion kip). Looking ahead, the cabinet outlined key actions for the coming months, including strengthening foreign reserves, centralising foreign currency exchange, prioritising essential imports, monitoring goods price in local markets and enhancing revenue collection mechanisms. Other priorities include regulating movement of and certifying concentration of minerals, repairing disaster-hit infrastructure, expanding vocational training, and creating jobs. To support long-term growth and stability, the cabinet approved in principle seven strategic documents. These include draft strategies on state finance through 2035 and a vision for 2040, as well as draft decrees on direct borrowing, One District One Product, startup promotion, and tourism attraction management. The draft Five-Year National Socio-Economic Development Plan for 2026–2030 was also presented at the meeting. - Vientiane Times/ANN
