France: Inflation accelerates in July
August 14, 2013
Consumer prices fell 0.3% over the previous month in July, which contrasted the 0.2% increase registered in June and was in line with market expectations. The monthly increase mostly reflected lower prices for food and services as well as for manufactured goods resulting from summer sales.
Annual inflation rose from 0.9%% in June to 1.1% in July, also in line with market expectations. Inflation is currently at its highest rate in six months. Meanwhile, the core inflation index, which excludes more volatile items such as oil, fruit and vegetables, rose 0.2% over the previous month, following a flat reading in June. Annual core inflation rose from 0.3% in June to 0.6% in July.
Annual HICP inflation (based on the harmonized index of consumer prices) edged up from 1.0% in June to 1.2% in July. Nonetheless, annual average HICP moderated to 1.4% from 1.5% in June.
FocusEconomics Consensus Forecast panellists expect HICP inflation to average 1.5% in 2013, which is down 0.1 percentage points from last month's forecast. Next year, panellists project inflation to average 1.8%.