France Inflation

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France: Inflation remains steady

August 14, 2012

In July, consumer prices fell 0.4% over the previous month, which was below the flat reading recorded in June. The monthly reading reflected a decline in prices for clothing and footwear as well as for manufactured goods, which completely offset higher services and transport prices. Annual inflation remained unchanged at June's 1.9%, which marks the lowest level since February 2011 and was in line with market expectations. The core inflation index, which excludes more volatile categories such as oil, fruit and vegetables, fell 0.2% over the previous month, which contrasted the 0.2% increase in June. Annual core inflation remained unchanged at June's 1.5%. Finally, HICP inflation (based on the harmonized index of consumer prices) inched down from 2.3% in June to 2.2%, the lowest level since July 2011. Annual average HICP remained unchanged at June's 2.5%.


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France Inflation Chart


France Inflation July 2012

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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