Tobacco and energy boost French inflation

Inflation continues to accelerate in April 2021, driven by tobacco and energy prices.

Inflation of 1.2% in April over one year

INSEE published the French inflation figures on Wednesday, May 12, 2021, and these show an acceleration in the rise in inflation in April. In comparison with April 2020, theApril 2021 inflation accelerated by 1.2%. In this acceleration the prices of tobacco and energy are involved.

Indeed, food prices are not involved in the acceleration of inflation, on the contrary since the increase in the first containment in March 2020, food prices have fallen by 0.3%. The biggest drop recorded is that of the prices of fresh products which fall by 3.6% after experiencing a very strong increase of 17.8% in 2020.

Tobacco and energy, causes of this inflation

Thus, it is the prices of tobacco and energy that are involved in this acceleration of inflation. In April 2021, INSEE noted an 8.8% increase in energy prices. This increase is mainly due to the increase of 13.9% in the prices of petroleum products, of 9.5% of those of natural gas and of town and of 3% of the prices of electricity.

Tobacco is not to be outdone since there is a 5.8% increase in tobacco prices. On the services side, this last saw their prices increase by 1.3% over one year and according to the INSEE report, the health crisis has had an impact on the quality of the latter. A situation which can be explained by the third period of confinement experienced by France making certain products unavailable for purchase. On the other hand, INSEE recorded a slight increase in prices for the month of April 2021, only 0.1%.