France Inflation


France: Inflation increases in August

September 12, 2012

In August, consumer prices rose 0.7% over the previous month, which contrasted the 0.4% drop recorded in July. The monthly reading reflected a sharp increase in prices for energy, especially for oil products. As a result, annual inflation rose from 1.9% in July to 2.1% in August, which slightly exceeded market expectations of a 2.0% rate. The core inflation index, which excludes more volatile categories such as oil, fruit and vegetables, added 0.1% over the previous month, which contrasted the 0.2% drop seen in July. Annual core inflation fell from 1.5% in July to 1.3%, its lowest level since October 2011. Finally, HICP inflation (based on the harmonized index of consumer prices) edged up from 2.2% in July to 2.4%. Annual average HICP remained unchanged at July's 2.5%.


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France Inflation Chart

France Inflation August 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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