France EUR

France Inflation Rate MoM

Info

History

Chart

Impact:

Low

Source: INSEE, France

Latest Release:

Date:

Surprise:

0.1%

Actual:

0.2%

Forecast: 0.1%

Previous/Revision:

-0.2%

Period: Dec

What Does It Measure?

The France Inflation Rate MoM measures the monthly percentage change in the price level of a basket of consumer goods and services, reflecting the cost of living and purchasing power within the country. It primarily assesses the shift in consumer prices, offering insights into inflation dynamics and economic stability, with key indicators including the Consumer Price Index (CPI).

Frequency

This report is released monthly, typically published on the first day of the month following the reported month, presenting a preliminary estimate that could be subject to revision.

Why Do Traders Care?

Traders closely monitor the monthly inflation rate as it serves as a crucial indicator of economic health, influencing monetary policy and market sentiment. A higher-than-expected inflation rate can lead to expectations of interest rate hikes, impacting assets like the euro and French equities negatively, while lower readings may ease concerns about inflation and support asset prices.

What Is It Derived From?

The inflation rate is derived from the Consumer Price Index, which is calculated using a survey of prices across a basket of goods and services, incorporating data from various regions and sectors within France. The index uses weighted averages based on consumer spending patterns, ensuring that more significant expenses have a higher influence on the overall index value.

Description

The inflation rate is reported on a month-over-month (MoM) basis, which captures short-term price changes and is useful for identifying immediate economic shifts. This method allows traders to react swiftly to sudden volatility, although year-over-year (YoY) comparisons are often preferred for a more comprehensive view of inflation trends.

Additional Notes

As a leading economic indicator, the monthly inflation rate helps assess consumer behavior and future economic activity, linking closely to central bank policies. It provides a timely reflection of price dynamics compared to other economic measures, such as producer price indexes or unemployment rates.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for Currency, Bearish for Stocks. Lower than expected: Bearish for Currency, Bullish for Stocks. A hawkish tone: Signaling higher interest rates due to inflation concerns is usually good for the Currency but bad for Stocks due to higher borrowing costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Actual	Forecast	Previous	Surprise
Jan 13, 2016	0.2%	0.1%	-0.2%	0.1%
Dec 10, 2015	-0.2%	0%	0.1%	-0.2%
Nov 12, 2015	0.1%	0.2%	-0.4%	-0.1%
Oct 14, 2015	-0.4%	-0.2%	0.3%	-0.2%
Sep 15, 2015	0.3%	-0.2%	-0.4%	0.5%
Aug 13, 2015	-0.4%	-0.3%	-0.1%	-0.1%
Jul 15, 2015	-0.1%	0.1%	0.2%	-0.2%
Jun 11, 2015	0.2%	0.1%	0.1%	0.1%
May 13, 2015	0.1%	0.2%	0.7%	-0.1%