French July Inflation Rate Confirmed at 1.1%


The inflation rate in France was confirmed at 1.1 percent year-on-year in July 2019, easing from a 1.2 percent rise in the previous month, as energy inflation decreased for the fourth straight month.

Energy cost increased at a much softer pace (0.8 percent vs 2.4 percent in June), driven by a decline in gas (-2.8 percent vs 10.5 percent) and petroleum product prices (-1.0 percent vs -1.3 percent). In addition, prices rose less for services (1.1 percent vs 1.2 percent), particularly for transport (0.9 percent vs 1.5 percent) and other services (1.6 percent vs 1.7 percent) while communication cost continued to fall (-2.0 percent vs -1.1 percent). 

On the other hand, food prices advanced faster (3.0 percent vs 2.6 percent), mainly fresh products (6.8 percent vs 3.7 percent) due to an increase in the prices of fresh vegetables (10.6 percent vs 6.9 percent). Meantime, manufactured product cost fell at a softer pace (-0.6 percent vs -0.7 percent). 

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, rose to 0.9 percent in July, the same pace as in the previous month. 

On a monthly basis, consumer prices went down 0.2 percent in June, after a 0.2 percent gain in June, dragged down by a fall in manufactured products (-2.8 percent from a flat reading in June) and a sharp decline in energy prices (-1.1 percent vs -0.1 percent). Meanwhile, services prices rose faster (1.0 percent vs 0.5 percent). 

The harmonized index of consumer prices increased by 1.3 percent from the previous year (vs 1.4 percent in June) while it dropped by 0.2 percent month-over-month (vs 0.3 percent in June).


French July Inflation Rate Confirmed at 1.1%


INSEE | Rafael Gonzalez | rafael.gonzalez@tradingeconomics.com
8/14/2019 7:35:14 AM