French Inflation Rate Jumps to Near 6-1/2-Year High
The French consumer price inflation is expected to increase to 2.3 percent year-on-year in July 2018 from 2 percent in the previous month, a preliminary estimate showed. It is the highest rate since March 2012.
Prices are expected to rise at a faster pace for: energy (14.3 percent vs 12.3 percent in June); services (1.3 percent vs 1.2 percent); food (2 percent vs 1.9 percent), of which fresh food (6.3 percent vs 5.9 percent) and other food (1.2 percent, the same as in June); and tobacco (16.8 percent vs 16.3 percent). In addition, manufactured product price deflation should ease (-0.1 percent vs -0.2 percent).
On a monthly basis, consumer prices are set to decline 0.1 percent in July after being unchanged in June, compared to market expectations of a 0.3 percent fall. This slight drop should come from a seasonal fall in manufactured product prices due to summer sales, parly offset by a rebound in services prices, essentially in airfares with the beginning of school holidays. Energy prices should slow down: those of petroleum products should fall back, but those of gas should accelerate sharply. Finally, food prices should recover slightly: those in fresh food should drop significantly less than in June and those in other food product should gather pace.
The harmonised index of consumer prices is expected to rise by 2.6 percent from the previous year (vs 2.3 percent in June); and fall by 0.1 percent month-over-month (vs flat reading in June).
7/31/2018 8:25:47 AM