France’s consumer price index
According to the INSEE National Statistics Office, France’s CPI (consumer price index) rose 0.3% in February. The CPI index for January stood at -1%. The rise in the CPI from -1% to 0.3% is a positive sign for the economy. However, on a year-over-year basis, France’s (EWQ) CPI index fell 0.2%. Earlier, we discussed that there was an increase in the Eurozone (EZU) (FEZ) and Germany’s (EWG) CPI index in February.
What drives the growth in the CPI index?
Although crude oil and commodity prices recovered in mid-February, it showed a huge fall over the past year. The rise in the CPI can be correlated with the recent rise in energy prices and commodity prices. The speculations of more easing from the ECB drove the sentiment in the CPI index. The ECB provided more than the Market expected.
In the next part of this series, we’ll analyze Japan’s trade balance for February.