France: Inflation remains steady in August
August 31, 2018
According to preliminary data published by the Statistical Institute (INSEE) on 31 August, consumer prices rose 0.5% from the previous month, contrasting the 0.1% contraction observed in July. The recovery reflected the end of summer sales for manufactured products and higher prices for certain tourism-related services. Meanwhile, energy costs remained broadly stable and food prices edged up slightly in August.
Inflation stood at 2.3% in August, unchanged from the previous month’s print, marking a six-year high. Annual average inflation ticked up to 1.6% from 1.5% in July.
Harmonized consumer prices increased 0.6% month-on-month, while harmonized inflation also remained steady at a six-year high of 2.6% in August. Finally, annual average harmonized inflation inched up to 1.7% from 1.6% in July.
France Inflation Forecast
FocusEconomics Consensus Forecast panelists expect harmonized inflation to average 1.9% in 2018, which is up 0.1 percentage points from last month’s forecast. For 2019, panelists see harmonized inflation averaging 1.8%.
Author: Almanas Stanapedis, Economist