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Quotes from Societe Generale Cross Asset Research:
-Looking ahead, we expect French HICP inflation to gradually increase until the end of the year, reaching 1.0% yoy in December. This slight rebound would reflect the usual lag with the very mild economic recovery.
-We also expect some base effects on food prices to put some upward pressures on the overall French HICP inflation during the summer; lastly the combination of a slightly lower EURUSD and higher Brent oil prices in USD will lead to a positive contribution from energy prices from Q4 14. On average, we expect French HICP inflation to print at 0.9% yoy this year and 1.3% yoy next year in 2015..