French June Inflation Rate Confirmed At 6-Month Low


Consumer prices in France rose 0.7 percent year-on-year in June of 2017, matching the preliminary figure and following a 0.8 percent rise in the prior month. It was the lowest inflation rate since December 2016, as cost of energy increased at a slower pace.

Year-on-year, cost went up at a slower pace for energy (1.9 percent from 5.3 percent in May), mainly petroleum products (1.6 percent from 8.1 percent); and tobacco (2.4 percent from 2.6 percent in May). Meanwhile, food prices increased further (0.8 percent from 0.4 percent in May), boosted by fresh food (1.5 percent from -0.3 percent) and other food (0.6 percent from 0.5 percent). In contrast, price fell for manufactured goods (-0.3 percent from -0.7 percent in May). Inflation of services was steady at 0.9 percent, as prices rose for actual rentals and services for dwellings (0.5 percent, the same as in May), health (1.6 percent from 1 percent), transport (2.2 percent from 1.7 percent) and other services (1.3 percent from 1.4 percent).

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, rose 0.4 percent, the same pace as in May.

On a monthly basis, consumer prices were unchanged for the second straight month. An increase in services prices due to a seasonal rebound in airfares was offset by a drop in energy prices and a downturn in food prices. Meantime, prices of manufactured products rose barely over a month, as in the two previous months.

The harmonised index of consumer prices rose 0.8 percent from the previous year and was flat month-over-month.

Insee l Rida Husna | rida@tradingeconomics.com
7/13/2017 11:07:43 AM