FRANCE DATA: France PPI M/M Rises for Third Consecutive Month

France December PPI rose 1.0% M/M (3.7% revised prior from 3.2%). This is the third consecutive monthly rise. We note that this is non-seasonally adjusted data. The M/M print is lower than in November which was the highest since March 2022 (note that November is typically the highest M/M print of the year though). The M/M increase was still above the 5/10-year averages for December prints, however.

• On an annual basis it fell 3.8% Y/Y (vs -4.7% in November) - the thirteenth consecutive month in negative territory.
• The sequential increase was driven by extractive industries, energy and water producer prices (which accounts for 25% weight of total PPI) increasing 3.2% (vs 13.3% in November). This softening compared to November is due to "a particularly marked increase in electricity prices in November".
• The remaining 75% of weighting is accounted for by manufactured goods which only rose a marginal 0.1% M/M (vs 0.1% in Nov).
• Within manufactured goods, food prices rose 0.3% M/M (vs 0.0% in Nov), which the press release states is due to "seasonal demand for the holidays", transport equipment prices and electrical machines were unchanged (vs 0.1% and 0.2% respective priors), coke and refined petroleum products fell 1.2% M/M due to global oil prices falling in December (vs 1.6% rise in Nov) and other manufactured products prices rose 0.2% M/M (vs a fall of 0.1% in Nov).
• Note that INSEE stated that "Motor Vehicles was significantly overestimated in the recent period". They state that "the increase in producer prices for motor vehicles on the French market between September 2020 and September 2024 has been revised from 26.3% to 11.2%, and the increase in producer prices for the French manufacturing industry on the French market has been revised from 31.9% to 31.2%."