26 February 2002, 12:28  French January consumer prices rise 0.5 pct m/m

PARIS, Feb 26 - France's consumer price index rose 0.5 percent in January compared to December largely due to an increase in the cost of fresh food, the national statistics office said on Tuesday. January CPI was up 0.5 percent month-on-month on an EU-harmonised basis and rose an annual 2.4 percent, statistics office INSEE said. This compares with a year-on-year rate of 1.4 percent in December. "The rise in the month of January is explained by a strong increase in the price of fresh goods," INSEE said in a statement. The cost of food products, excluding tobacco, rose 1.7 percent from December. The national measure of CPI also rose 0.5 percent month-on-month and increased 2.2 percent year-on-year. Economists polled by had forecast French CPI measured on an EU-harmonised basis to dip 0.1 percent from December. They expected the national measure to show a rise of 0.1 percent month-on-month. The report bucks recent data showing signs of falling inflation in the 12-member euro zone. Data from Germany on Monday showed CPI in the euro-zone's biggest economy fell to 1.7 percent year-on-year in February from 2.1 percent in January. Bank of France Governor Jean-Claude Trichet had warned that the January year-on-year comparison would not be good because of low comparitive figures.

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