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France: Inflation moderates in July

August 13, 2015

In July, consumer prices fell 0.4% over the previous month, which followed June’s 0.1% decrease and marked a six-month low. The reading was in line with market expectations. According to the national statistical institute (INSEE), the result came on the back of decreases, which were partially seasonal, in prices linked to summer sales and fresh foodstuff. In addition, petroleum products also contributed to the decrease in consumer prices.

Inflation inched down from June’s 0.3% to 0.2% in July, which marked a three-month low. Core consumer prices, which do not take into account volatile categories such as fresh food and energy prices nor regulated prices, grew 0.1% over the previous month, which was above June’s flat reading. Core inflation tallied 0.7% in July (June: 0.6%).

Harmonized consumer prices (based on the harmonized index of consumer prices, HICP) fell 0.5% over the previous month, which was below June’s 0.1% decrease. Harmonized inflation tallied 0.2% in July (June: 0.3%). Annual average HICP inflation remained stable in July at June’s 0.2%.

The government expects inflation to average 0.9% in 2015. FocusEconomics Consensus Forecast panelists expect HICP inflation to average 0.2% in 2015, which is unchanged from last month’s forecast. For 2016, panelists project that inflation will accelerate to 1.1%.


Author:, Economist

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France Inflation Chart


France Inflation July 2015

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: National Institute of Statistics and Economic Studies (INSEE).


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