French Inflation Eases in July


French annual inflation was reported at 0.2 percent in July of 2015, slowing from 0.3 percent rise in the previous month and matching market consensus. A decline in cost of manufactured products and energy offset an increase in cost of food and services.

Year-on-year, cost increased for: food (+0.4 percent), fresh food (+4.6 percent), transport and communication services (+2.6 percent), other services (+1.6 percent), actual rentals and services for dwellings (+0.9 percent), tobacco (+0.3 percent) and medical services (+0.1 percent). In contrast, prices declined for: petroleum products (-9.3 percent), food excluding fresh products (-0.2 percent), medical products (-3.6 percent) and clothing and footwear (-1.6 percent).

On a monthly basis, the consumer price index dropped 0.4 percent in July, following a 0.1 percent decline in the preceding month. Price decreases were reported for: clothing and footwear (-14.4 percent), petroleum products (-1.8 percent), medical products (-0.4 percent), medical services (-0.2 percent) and fresh food (-4.1 percent). In contrast, cost increased for: transport and communication services (+3.8 percent), other services (+1.3 percent) and tobacco (+0.0 percent)  

In July, the core inflation indicator (ISJ) grew by 0.1 percent (after remaining unchanged in June) and by 0.7 percent year-on-year (after +0.6 percent in June and May).

The Harmonized Index of Consumer Prices (HICP) was down 0.5 percent over a month and up 0.2 percent year-on-year (after +0.3 percent in June).

French Inflation Eases in July


Insee l Rida Husna l rida@tradingeconomics.com
8/13/2015 8:05:36 AM