France: Inflation eases to lowest level in over a year
July 12, 2012
In June, consumer prices were flat over the previous month, which was above the 0.1% drop recorded in May. The monthly reading reflected a decline in energy prices which completely offset higher manufacturing and food prices. Annual inflation inched down from 2.0% in May to 1.9% in June, 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, added 0.2% over the previous month, which followed a 0.1% increase in May. As a result, annual core inflation inched up from 1.4% in May to 1.5% in June. Finally, HICP inflation (based on the harmonized index of consumer prices) remained unchanged at May's 2.3%, the lowest level since July 2011. Annual average HICP remained unchanged at May's 2.5%.