French August Inflation Rate Confirmed at 0.9%


French annual inflation came in at 0.9 percent in August 2017, unrevised from the preliminary estimate and compared with 0.7 percent in the previous month. It was the highest inflation rate since April, mainly due to a surge in energy prices.

Year-on-year, upward pressure came from: Energy (4.8 percent from 1.9 percent in July); food (0.6 percent from 0.7 percent), of which other food (0.8 percent, the same as in July) and fresh food (-0.8 percent from 0.4 percent); tobacco (2.4 percent, the same as in July); and services (1.2 percent from 1 percent). In contrast, prices of manufactured products fell 0.7 percent, after a 0.4 percent decline in July.

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, stood at 0.5 percent, unchanged from July.

On a monthly basis, consumer prices increased 0.5 percent, following a 0.3 percent fall in July and also in line with earlier estimates. The rebound in prices was driven by a rise in manufactured product prices (1.1 percent), and also from an upturn in energy prices (1.2 percent). Contrariwise, services price inflation slowed down sharply to 0.3 percent, due to a seasonal downturn in airfares and a slowdown in those of accommodation services. Food prices were unchanged.

The harmonised index of consumer prices rose by 1 percent from the previous year and by 0.6 month-over-month.

INSEE l Chusnul Ch Manan | chusnul@tradingeconomics.com
9/14/2017 8:40:48 AM