France Inflation

France

France: Inflation inches up in June

July 12, 2011

In June, consumer prices rose 0.1% over the previous month, matching the increase recorded in May. Annual inflation inched up from 2.0% in May to 2.1% in June, which was in line with market expectations. According to the National Statistical Institute (INSEE), the June reading reflected rising prices for food and services, which were only partially offset by lower energy prices. The core inflation index, which excludes more volatile categories such as oil as well as fruit and vegetables, also rose 0.1% in June, unchanged from May's 0.1% increase. Annual core inflation inched up from 1.1% in May to 1.2%. Finally, annual average HICP inflation (based on the harmonized index of consumer prices) also rose from 1.9% in May to 2.0%, the highest level since May 2009.


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