France Inflation July 2016


France: Inflation steady in July

August 11, 2016

According to revised figures released by the National Statistical Institute (INSEE), consumer prices in July dropped 0.4% over the previous month, contrasting the 0.1% increase tallied in June. July’s reading reflected lower prices for clothing and footwear due to summer retail sales and fresh food. July’s figure, however, was partly offset by higher prices for transportation.

Inflation in July remained steady at June’s six-month high of 0.2%. Meanwhile, annual average inflation in July remained unchanged at the flat reading tallied in June.

Harmonized consumer prices (based on the harmonized index of consumer prices (HICP)) dropped 0.4% over the previous month (June: +0.1% month-on-month). Harmonized inflation rose 0.4% annually in July, coming in a tad above the 0.3% print observed in June. Meanwhile, annual average HICP inflation remained unchanged at the 0.1% print tallied in June.

The government expects inflation to average 0.1% in 2016 and 1.0% in 2017. FocusEconomics Consensus Forecast panelists expect HICP inflation to average 0.3% in 2016, which is unchanged from last month’s forecast. For 2017, panelists project that inflation will accelerate to 1.2%.

Author: Jean-Philippe Pourcelot, Economist

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France Inflation Chart

France Inflation July 2016

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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