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French Inflation Drops in May on Energy Prices, Stalling Growth

France’s inflation rate declined for a third month in May, helped by lower energy prices as economic growth slowed.

Consumer prices rose 2.3 percent from a year earlier based on European Union methodology, compared with a 2.4 percent increase in April, the Paris-based national statistics office, Insee, said today. Economists forecast a 2.3 percent gain, the median of 15 estimates in a Bloomberg News survey showed.

A 26 percent drop in London crude oil prices this year is combining with slowing growth to ease price pressure on households. Energy prices fell 1.5 percent in May from April, with oil products dropping 2.5 percent.

“The price of energy and transport services and communications is falling,” Insee said. “Food prices are up.”

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