France: Inflation hits six-year high in July
August 14, 2018
Revised data published by the Statistical Institute (INSEE) on 14 August matched the preliminary estimate, which showed that consumer prices shrank by a marginal 0.1% in July from a month earlier (June: +0.0% month-on-month). Summer sales contributed to a fall in manufactured-product prices, while airfare prices shot up. Meanwhile, energy costs slowed somewhat as food prices rebounded.
Inflation came in at 2.3% in July, a six-year high and climbing from June’s 2.0% reading. Annual average inflation rose to 1.5% from 1.3% a month earlier.
Harmonized consumer prices recorded a similar 0.1% month-on-month decline, while harmonized inflation landed at 2.6%—a six-year high (June: 2.3%). Finally, annual average harmonized inflation inched up to 1.6% from 1.5% in June.
Author: Christopher Thomas, Economist