France Inflation Rate Revised Down to 2% in June



The French consumer price inflation rate came in at 2 percent year-on-year in June of 2018, unchanged from the previous month, but below preliminary estimates of 2.1 percent. It remained at its highest level since August 2012, as prices increased faster for both energy and food products while those of services slowed down.

Year-on-year, inflation rose for: energy (12.3 percent vs 10.0 percent in May) and food (1.9 percent vs 1.8 percent), mostly fresh food (5.9 percent vs 5.0 percent) as other food cost must remain steady (1.2 percent). Meanwhile, services prices eased (1.2 percent vs 1.5 percent) and manufactured products cost fell at the same pace (-0.2 percent).
 
Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, decreased to 0.8 percent in June from 1 percent in May.
 
On a monthly basis, consumer prices were flat in June, missing preliminary estimates of a 0.1 percent gain and following a rise of 0.4 percent in the previous month. Consumer prices were flat for : manufactured products (from 0.3 percent in May), services (from 0.1 percent), and tobacco (from - 0.6 percent). Main upward pressure came from: energy (0.9 percent from 2 percent).

The harmonized index of consumer prices went up 2.3 percent from the previous year; and were flat month-over-month.
 

France Inflation Rate Revised Down to 2% in June


INSEE, France l Chusnul Ch Manan | chusnul@tradingeconomics.com
7/12/2018 7:30:31 AM