French Inflation Rate Unchanged at Near 6-1/2-Year High

The French consumer price inflation is set to remain at 2.3 percent year-on-year in August 2018, unchanged from the previous month's near 6-1/2-year high, a preliminary estimate showed. A slowdown in energy inflation was offset by a further increase in food prices.

Energy inflation should slow to 13 percent in August from 14.3 percent in the previous month; while food prices are set to rise at a faster 2.1 percent, compared with 1.9 percent in July, boosted by fresh food (6.8 percent vs 6.4 percent) and other food products (1.3 percent vs 1.2 percent). Meantime, inflation is expected to remain unchanged for services (at 1.3 percent) and tobacco (at 16.8 percent) while manufactured products prices should fall 0.1 percent, the same pace as in July.

On a monthly basis, consumer prices are expected to rise by 0.5 percent in August, recovering from a 0.1 percent fall in July and matching market expectations. The increase should mainly be due to a seasonal rebound in manufactured product prices after the summer sales in the metropolitan area, and to a seasonal rise in the prices of some tourism-related services. In addition, food prices should increase slightly, in the wake of food products excluding fresh products. Tobacco and energy prices should be stable this month. The slight rise in the prices of petroleum products and domestic gas should be offset by lower electricity prices.

The harmonised index of consumer prices is expected to rise by 2.6 percent from the previous year (vs 2.6 percent in July); and by 0.6 percent month-over-month (vs -0.1 percent in July).

French Inflation Rate Unchanged at Near 6-1/2-Year High

Insee | Rida |
8/31/2018 11:57:22 AM