Insight from real-time alternative data: French inflation hits new record in May

QuantCube’s real-time data reports that France's national year-on-year consumer price index rose by more than 5% in May 2022, reaching its highest since 1985. The graph below shows the evolution of QuantCube French CPI Index and its components over the last year.  It seems transports and housing sectors are severely affected by rising energy prices.  

Based on real-time alternative data, QuantCube examined Inflation in the transportation sector. Our analysis indicates that the inflation is mainly driven by motor fuels prices, which rose by 29.9% on May 31st compared to the last year.  As regards to the food component, which includes fruits and vegetables prices, we observe 4.3% year-on-year inflation level, a 1.1% increase compared to the level in April 2022. 

Tackling high inflation is the current priority for the French government, which has been deploying several measures to help consumers cope with soaring prices. Will these measures succeed in supporting purchasing power? Is an intervention from the ECB necessary to mitigate inflationary pressures? Interesting to see how the situation will evolve in the coming months. 

Exhibit 1: QuantCube French CPI Nowcast – Decomposition