Prices for manufactured goods weigh on French CPI in April

The cost of living in France declined at a quicker pace in April as a drop in the prices of manufactured goods offset increases in the energy and services space.

France's consumer price index edged higher by 0.1% month-on-month but declined by 0.2% in comparison to year ago levels, a final estimate from INSEE showed.

CPI fell 0.1% in March.

Prices for manufactured goods dropped 0.2% over the month, dragging the year-on-year comparison lower to -0.6%, on the back of "aggressive promotions of furniture and cars," said Claus Vistese, chief Eurozone economist at Pantheon Macroeconomics.

Food and tobacco prices were flat versus March but those for energy and services gained 0.3% and 0.2%.

"Hit by deflation in manufacturing, but headline should rebound soon," Vistese said in a research note sent to clients.

In harmonised terms, the headline rate of CPI was up by 0.1% month-on-month and 0.1% lower year-on-year, both as expected by economists.

At the 'core' level CPI advanced 0.1% on the month and 0.6% over the year.