France: Inflation moderates in August
September 12, 2013
Consumer prices increased 0.5% over the previous month in August, which contrasted the 0.3% decrease registered in July and was in line with market expectations. The monthly increase was mainly driven by an increase in manufacture and energy prices, which offset the decrease in food prices.
Annual inflation declined from 1.1%% in July to 0.9% in August, also in line with market expectations. Meanwhile, the core inflation index, which excludes more volatile items such as oil, fruit and vegetables, was flat over the previous month, following a 0.2% increase in July. Annual core inflation remained at July's 0.6%.
Annual HICP inflation (based on the harmonized index of consumer prices) decreased from 1.2% in July to 1.0% in August. Meanwhile, annual average HICP inflation moderated from 1.4% in June to 1.3%, which marks the lowest rate since August 2010.
FocusEconomics Consensus Forecast panelists expect HICP inflation to average 1.1% in 2013, which is down 0.1 percentage points from last month's forecast. Next year, panelists project inflation to average 1.5%, a 0.3% increase over last month's forecast.