French June Inflation Rate Confirmed at 1.2%

The inflation rate in France was confirmed at 1.2 percent year-on-year in June 2019, up from a near two-year low of 0.9 percent in the previous month, as services and food prices rose at a faster pace while energy inflation eased and manufactured products prices continued to fall.
INSEE | Joana Ferreira | 7/11/2019 11:22:01 AM
Services inflation accelerated to 1.2 percent in June from 0.6 percent in May, boosted by increases in prices of actual rentals and services for dwellings (0.7 percent vs -0.2 percent), transport (1.5 percent vs -1.5 percent), and other services (1.7 percent vs 1.5 percent); while deflation eased for both health services (-0.2 percent vs -0.4 percent) and communication (-1.1 percent vs -3.4 percent). In addition, food prices rose 2.6 percent, faster than 2.3 percent in the previous month, on the back of fresh food (3.7 percent vs 2.3 percent) and other food (2.3 percent, the same as in May).

On the other hand, inflation softened for both energy (2.4 percent vs 3.4 percent) due to a decline in petroleum products, and tobacco (9 percent vs 9.1 percent); while manufactured products prices continued to fall (-0.7 percent, the same as in May) led by medical products (-3.1 percent vs -2.8 percent) and clothing and footwear (-0.9 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 June from 0.5 percent in May.

On a monthly basis, consumer prices rose 0.2 percent in June, following a 0.1 percent gain in May, boosted by a rebound in services prices (0.5 percent vs -0.2 percent), which was partly offset by a slight downturn in energy prices (-0.1 percent vs 0.6 percent) and a slowdown in food cost growth (0.1 percent vs 0.7 percent). The prices of manufactured products were stable, after a 0.2 percent rise in May. Similarly, tobacco prices were unchanged in June, following a 0.3 percent advance in the previous month.

The harmonized index of consumer prices increased by 1.4 percent from the previous year (vs 1.1 percent in May) and by 0.3 percent month-over-month (vs 0.1 percent in May).

French June Inflation Rate Confirmed at 1.2%