French Preliminary Inflation at 1.8% in January

French preliminary inflation at 1.8% in January

(Reuters) -French consumer prices increased slightly less than anticipated in January, preliminary data from statistics agency INSEE showed on Friday.

France's harmonized inflation rate, adjusted for comparison with other euro zone countries, was 1.8% year-on-year in January, exactly the same figure as in the previous month, INSEE said.

INSEE said manufactured goods prices rebounded and those of energy sped up.

This was balanced by a slowdown in services and tobacco prices. Tags for food remained virtually stable.

On a month-on-month basis, prices were down by 0.2% in January after a 0.2% rise in December.

This decrease was due to seasonal drops in winter clothing, footwear and transport prices, which offset increases in insurance, energy, food and tobacco ones.

A poll of 21 economists surveyed by Reuters had on average expected a 1.9% rise of the harmonized consumer price index in the first month of the year, with estimates ranging from 1.7% to 2.2%.

(Reporting by Michal Aleksandrowicz in Gdansk; Editing by Milla Nissi)