France Inflation Rate Confirmed at 2.3% in August


France's annual inflation rate stood at 2.3 percent in August 2018, unchanged from the preliminary estimate and the same as in the previous month. It remained the highest inflation rate since May of 2016, when prices showed no growth. Inflation was steady for services and tobacco.

Energy inflation eased to 13 percent in August from 14.3 percent in the previous month; while food prices rose to 2.2 percent, compared with 1.9 percent in July, boosted by fresh food (6.9 percent vs 6.4 percent) and other food products (1.4 percent vs 1.2 percent). Meantime, inflation was steady for services (at 1.3 percent) and tobacco (at 16.8 percent) while manufactured products prices fell 0.1 percent, the same pace as in July.

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures was unchanged at 0.9 percent in August, the same pace as in July.
 
On a monthly basis, consumer prices rose by 0.5 percent in August, recovering from a 0.1 percent fall in July and matching market expectations. The rebound came from a seasonal increase in manufactured product prices (1.1 percent from -2.8 percent), after summer sales in metropolitan area. Meantime, food prices accelerated (0.3 percent from 0.1 percent), in the wake of those in food excluding fresh products. By contrast, services prices sharply slowed down (0.3 percent from 1.1 percent), due to the seasonal downturn in airfares and the drop in communication services prices.
 
The harmonised index of consumer prices went up by 2.6 percent from the previous year (the same pace as in July); and by 0.5 percent month-over-month (vs -0.1 percent in July).
 
 

France Inflation Rate Confirmed at 2.3% in August


INSEE, France l Chusnul Ch Manan | chusnul@tradingeconomics.com
9/13/2018 9:51:18 AM