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%.
Author: Eric Denis , Economist