France: Harmonized inflation steady at near six-year high in June

Revised data released by the National Statistical Institute (INSEE) on 12 July matched preliminary figures and showed that consumer prices growth edged down from 0.4% month-on-month in May to a flat reading in June. Higher prices for fuel and energy were offset by lower prices for food products.

Inflation came in at 2.0% in June, matching the print observed in May, which had marked an almost six-year high. Meanwhile, annual average inflation inched up to 1.3% in June from May’s 1.2%.

Harmonized consumer prices recorded zero growth in June, which was below May´s 0.5% month-on-month increase. Harmonized inflation remained unchanged in June at the almost six-year high of 2.3% recorded in May. Finally, annual average harmonized inflation rose to 1.5% in June from 1.3% in May.

FocusEconomics Consensus Forecast panelists expect harmonized inflation to average 1.4% in 2018, which is up 0.1 percentage points from last month’s forecast. For 2019, panelists project that average inflation will increase to 1.5%.