French inflation slowed to 5.3% in March

Paris, April 1 (IANS) A surge in France's consumer price index (CPI) in March slowed down to 5.3 per cent year-on-year, from 6.3 per cent in February, the National Institute of Statistics and Economic Studies (INSEE) said in a preliminary report.

"This decrease in inflation should result from a slowdown in energy prices," INSEE said.

According to the preliminary report, energy prices in France should increase by 4.9 per cent year-on-year in March, compared with 14.1 per cent in February, reports Xinhua news agency.

The spike in petroleum product prices already decelerated sharply in February, due to a slowdown in prices of diesel, petrol, and liquid fuels.

However, food prices, including fresh food, will keep rising, by 16.6 per cent in March, INSEE added.

Francois Villeroy de Galhau, chief of France's central bank, warned at the beginning of March that inflation will persist in France over the next two to three years.

It should reach its peak in the first half of this year, but could be halved by December, he said.

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