At the same time that the tide fluorescent yellow abates, the rise in consumer prices cup. In January, inflation fell 0.4% on a month, said Insee on Thursday. After, between July and October, exceeded the 2% annual increase in the price index for consumption now stands at +1.2% on year in January.
The reflux of January is due to the “downturn in energy prices,” says the national Institute of statistics. These same energy prices, combined with the increase of the carbon tax, have contributed to pushing the “yellow vests” to occupy the roundabouts in November. The figures are spectacular. The rising price of energy is increased by +11.2% year on year in November to just +1.9% in January. And Insee recalled that “in January of 2018, they increased by 7.1%, following a rise in oil prices and the taxation of fuels”…
clearly, the energy has almost recovered in January 2019 its price levels before the surge of oil prices… but not before the increase of the carbon tax from 1 January 2018. In fact, it has not been canceled. To turn off the attack of the “yellow vests”, Emmanuel Macron, in effect, has simply cancelled the increase that was to occur in January 2019, and then every year until 2022.
positive indicators
The slowdown in inflation has not been the only good news on the front of economic statistics Thursday morning. The business climate remained stable in January, thanks to the better morale of the heads of trade companies, which have had a very bad year-end 2018. In addition, the PMI index, a leading indicator of economic activity, also published on Thursday, rebounded in February. He rose from 48.2 to 49.9 points in February, and touches now the 50 points threshold below which the economy shrinks. What do say to some, as the economist of HSBC Olivier Vigna, that for the first time since 2013, the French economy could grow more strongly than the German in 2019 and in 2020.
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